Bitcoin Falls as Oil Rises and Fed Hints at Rate Increases
Coincident with other assets, the price of Bitcoin has fallen further as oil prices have risen and the Federal Reserve has made a hawkish remark. The top asset’s price went as low as $80,922 early Thursday morning in New York, but has since recovered to a level of $81,203. There has been a 4% drop in the price of bitcoin over the past week, and a 3% drop over the last day. Due to a remarkable surge in September and one of its best quarters in recent history, the coin seemed to be heading for the $90,000 mark as of last week.
The month of October, known as Uptober for its penchant for rewarding bitcoin investors in the past, is starting out slowly this year due to the increasing price of oil. Brent crude oil prices have soared this week as a result of repeated attacks on vessels in the Strait of Hormuz. American President Trump hinted that he was disappointed with the pace of development in negotiations with Iran. At least temporarily, the price of bitcoin and other “risk-on” assets has been hit by the rising cost of oil this year. This is because the price of oil increases the possibility that the Federal Reserve would raise interest rates.
Historically, Bitcoin has done well in low interest rate circumstances due to its high liquidity. Governor Christopher Waller of the Federal Reserve said Thursday that further interest rate hikes are likely to be required to rein down inflation. However, he did mention that there was “flexibility” when it came to the rate of growth. Since Iran closed the Strait of Hormuz in response to U.S. and Israeli military strikes on Iran in February, oil prices have risen dramatically. Worldwide, including in the US, prices have been rising steadily due to rising oil costs.
Despite the new Federal Reserve Chair, Kevin Warsh, making comments about bitcoin in September, the price of the cryptocurrency continued to rise, even as the central bank raised interest rates. The price of bitcoin may have fallen, but some market watchers still think it’s in a bull market. From its all-time high in October 2025 through the entirety of 2026, the biggest cryptocurrency was in a bear market. Its current price is $126,080, more than 30% below its all-time high.
