Bitcoin’s valuation has experienced a deeper retreat, declining alongside other major assets as crude oil prices continued their upward trajectory and the Federal Reserve adopted a stern stance.
The leading digital asset was recently valued at $81,203, having dipped to a low of nearly $80,922 during Thursday morning trading in New York.
Over the past 24 hours, the cryptocurrency has lost approximately 3% of its worth, bringing its seven-day decline to 4%.
As recently as last week, the coin appeared poised to approach the $90,000 threshold following a remarkable September surge and one of its strongest quarterly performances in years.
However, “Uptober”—the historically lucrative month for crypto investors—is getting off to a sluggish start amid surging oil costs.
Brent crude prices have climbed this week following fresh attacks on tankers in the Strait of Hormuz. Additionally, U.S. President Trump suggested that negotiations with Iran were not progressing as desired.
In the short term, surging oil prices tend to weigh on bitcoin and other risk-on assets by raising the probability that the U.S. central bank will increase interest rates. Historically, lower interest rates have benefited bitcoin due to the resulting expansion in market liquidity.
During a speech on Thursday, Federal Reserve Governor Christopher Waller noted that additional interest-rate hikes will likely be necessary to cool inflation, though he mentioned there remains “flexibility” regarding how quickly those increases are implemented.
Crude prices have climbed since the U.S. and Israel launched attacks on Iran in February, prompting a retaliatory closure of the Strait of Hormuz by Iran. These elevated energy costs have contributed to persistent and rising inflation globally, including within the United States.
Even so, bitcoin’s price managed to brush off remarks from new Federal Reserve Chair Kevin Warsh in September, advancing despite a central bank interest rate hike.
Despite the current pullback, certain analysts believe bitcoin has re-entered a bull market. The foremost cryptocurrency endured a prolonged bear market for much of 2026 following its record highs in October 2025, and it presently trades more than 30% below its peak of $126,080.
Why is bitcoin’s price dropping?
Bitcoin’s price is falling due to rising oil costs from tensions in the Strait of Hormuz and hawkish comments from Federal Reserve officials signaling potential interest rate hikes.
How much is bitcoin down recently?
Bitcoin has dropped nearly 3% over the past day and is down 4% over a seven-day period, falling below $81,000.
What are analysts saying about the current market?
Despite the recent dip, some analysts indicate that bitcoin has entered a bull market again, following a bear market for most of 2026.
