Bitcoin Slides Below $81K as US-Iran Strike Fears Lift Oil Prices

Bitcoin dropped below $81,000 on Thursday, hitting a three-week low as escalating US-Iran tensions pushed oil prices sharply higher and rattled broader risk markets. The flagship cryptocurrency fell toward the $80,500 zone on Bitstamp — its weakest level since Sept. 21 — with BTC/USD four-hour charts from TradingView showing a clear break below the key $82,500 support level that bulls had defended for weeks.

Reports from NBC News, citing a Pentagon official and a person familiar with the matter, suggested the US is preparing for fresh military strikes on Iran. The geopolitical risk sent crude futures surging, with WTI crude reaching $93.20 per barrel — its highest since Oct. 2 — and Brent crude climbing to $105.88. Speaking at a rally in San Antonio, President Donald Trump said Middle East envoy Steve Witkoff was making progress on a potential peace deal, though he personally downplayed his interest in a diplomatic outcome, telling supporters the conflict could end "very soon."

Adding pressure to risk assets, the US 30-year bond yield hit a new 24-year high of 5.73% before easing to 5.65%. Federal Reserve Governor Christopher Waller said in a speech at a Central Bank of Turkey forum in Istanbul that additional interest-rate hikes will be needed to bring inflation back to the Fed's 2% target, though he noted flexibility on timing. CME Group's FedWatch Tool showed markets increasing bets on a 0.25% rate hike at the Fed's December meeting, compounding headwinds for Bitcoin and other risk-on assets as war-driven fuel price spikes threaten to entrench inflation further.