Bitcoin fell to $83,570 over the past 24 hours as tensions around the Strait of Hormuz pushed oil prices above $100 a barrel. The sharp drop wiped out about $80 billion from the crypto market within hours and triggered nearly $550 million in liquidations, with leveraged long positions taking most of the losses.
Oil Price Jump Triggers Bitcoin Sell-Off
The sell-off came as tensions grew around the Strait of Hormuz. Iran increased drone and missile attacks on oil tankers, while UK Maritime Trade Operations (UKMTO) tracked at least nine attacks on commercial ships during the first week of October.
The attack pushed Brent crude above $101 a barrel, following the supply squeeze at the Strait of Hormuz.
Higher oil prices also pushed U.S. 10-year Treasury yields to 5.25% and strengthened the dollar, leaving very little liquidity for risk assets like Bitcoin.
Crypto Liquidations Reach $550M
The sudden drop in Bitcoin price also hit leveraged traders hard.
According to CoinGlass data, 101,984 traders were liquidated over 24 hours, with total crypto liquidations reaching $548.97 million. Long positions accounted for more than 88% of the liquidations as falling prices forced leveraged traders to close their positions.
More than $175 million in Bitcoin positions were also liquidated.
Bitcoin Price Now Eyeing $83K Support
The sell-off also weakened Bitcoin’s technical structure. BTC failed to break the $87,000 resistance for the third time since late September before falling below the $84,000 support level.
The next important area is 83,000. Holding this zone could allow Bitcoin to recover toward $85,500, which is the 38.2% Fibonacci resistance level.
However, a decisive break below $83,000 could expose Bitcoin to the next major support near $80,000 and potentially trigger another wave of leveraged liquidations.
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