Bitcoin Drops Below $84,000 Amid Iranian Oil Tanker Attacks

Bitcoin fell approximately 1.5% to an intraday low of $83,840 on Wednesday, breaking below the $84,000 support level. The decline coincided with a broader market shift toward safe-haven assets, such as the U.S. dollar and U.S. Treasuries, after the Government of Iran announced attacks on commercial oil tankers in the Strait of Hormuz. These attacks drove Brent crude prices to approximately $101.50 a barrel and pushed 10-year Treasury yields to 5.31%.

The price drop contributed to roughly $550 million in cryptocurrency liquidations within 24 hours, with long positions accounting for $487.2 million of those closures. Other digital assets saw steeper losses, including Dogecoin, which fell nearly 5%, and Ethereum, which dropped between 3% and 5%.

Analysts from Zeus Research and LVRG Research characterized the move as a mechanical leverage flush and profit-taking following a 40% advance through September. ViaBTC viewed the action as constructive consolidation. However, FxPro warned that a sustained break below $83,000 could lead to a rapid decline toward $80,000. Investors remain focused on the Federal Reserve System as they await the release of September meeting minutes to gauge the likelihood of further interest rate hikes amid new inflationary pressures.