Bitcoin Drops Below $83,000 as Oil Surge Raises Rate Concerns

Bitcoin (BTC) fell below $83,000 on Wednesday as a surge in oil prices and rising U.S. borrowing costs intensified a broader selloff across risk assets.

Bitcoin reached an intraday low of $82,823 before trading near $83,062, down nearly 4% over 24 hours. Brent crude climbed above $102 after attacks on vessels in the Strait of Hormuz intensified, adding to inflation concerns.

U.S. mortgage rates rose for a seventh consecutive week to their highest level in nearly three years. Higher borrowing costs have increased concern that the Federal Reserve could raise interest rates again after lifting them last month, putting additional pressure on assets that have recently benefited from easier financial conditions.

Nearly $178 million in long Bitcoin positions closed during the 24-hour period. Gold, silver and stocks also declined as markets reacted to the oil spike.

Bitcoin had reached nearly $87,086 last week and recently completed its strongest quarter in years, but Wednesday’s decline highlights the market’s sensitivity to energy prices and interest-rate expectations.