Bitcoin Dips Below $83K as Oil Shock Rattles Markets: What Happens Next?

In brief

• Bitcoin fell as low as $82,776.30 today and sits at $83,178.54, down 2.76% on the day, as oil climbed above $101 and bond yields climbed.
• The daily chart still shows a strong trend, but technical indicators show BTC near oversold territory.
• Myriad traders give 67% odds that Bitcoin touches $80,000 in October, and 55% that it touches $87,500.

Bitcoin had a rough morning. It opened today at $85,543.66, slid as low as $82,776.30, and now sits at $83,178.54. The drop appeared to scare off traders as the movement threatened to break a key support as BTC fell sharply within a few hours.

That 3.2% drop left leveraged traders holding the bag. Roughly $969 million in crypto positions were liquidated over the past 24 hours of which $644.47M were long positions, according to CoinGlass.

So what happened, and what comes next? Start with the culprit, because it isn't just a crypto story.

Stocks slip, oil climbs and bond yields spike

Wall Street is backing off record highs, with the S&P 500 down 0.59% to 7,772.60 and the Nasdaq off 0.71% in morning trading.

The reason is oil. Brent crude is back above $101 a barrel, the 10-year Treasury yield is near 5.34%, and the 30-year hit 5.70%, its highest since 2002. Even gold, the classic safe haven, dropped 1.53% to $4,123.10.