Bitcoin Slides Below $81,000 as Oil Prices Surge and Fed Signals More Rate Hikes

Bitcoin price drops below $81,000 on oil and Fed fears

Bitcoin's price fell below $81,000 on Thursday morning, continuing a slide driven by rising oil prices and signals from the Federal Reserve that more interest-rate increases may be coming.

The leading cryptocurrency dipped to as low as approximately $80,922 before settling around $81,203, according to Bitcoin Magazine. Over the past 24 hours, bitcoin lost nearly 3% of its value, and it is down about 4% over the past week.

What is driving the sell-off

Oil prices have jumped sharply this week after renewed attacks on tankers in the Strait of Hormuz, a critical global shipping chokepoint. The strait has been closed since Iran retaliated against the U.S. and Israel's attacks on Iran in February.

U.S. President Donald Trump also hinted that negotiations with Iran were not progressing favorably, adding to market concerns about energy supply disruptions.

At the same time, Federal Reserve Governor Christopher Waller told Reuters that further interest-rate hikes are likely needed to bring inflation under control, though he said the central bank has "flexibility" about how quickly it moves.

When oil prices rise, inflation tends to follow — and higher inflation often pushes the Fed to raise interest rates. Bitcoin and other risk assets like stocks tend to fall when borrowing costs increase, because tighter monetary policy reduces the amount of money flowing through the economy.

Key numbers

• Bitcoin traded around $81,203 on Thursday morning, dipping to nearly $80,922
• Down nearly 3% in 24 hours and 4% over the past week
• Bitcoin is more than 30% below its all-time high of $126,080, set in October 2025
• October has historically been a strong month for bitcoin, known among investors as "Uptober" — so far this year it has been a weak start

Official source: Fed Governor's remarks

In a speech reported by Reuters on Thursday, Federal Reserve Governor Christopher Waller said additional interest-rate increases are likely necessary to slow inflation. He cautioned, however, that the pace of future hikes could be adjusted depending on economic data.

What some analysts are saying

Despite the recent dip, some analysts believe bitcoin has entered a new bull market, the sustained upward phase of prices that follows a longer period of decline. Bitcoin spent most of 2026 in what is commonly called a bear market — a prolonged period of falling or stagnant prices — after hitting its record high in October 2025.

Last month, bitcoin appeared to shrug off comments from Federal Reserve Chair Kevin Warsh and continued to climb despite the central bank's decision to raise interest rates.

What is still unclear

It remains uncertain whether the current downturn marks a temporary pullback or the beginning of a deeper correction. Market participants are watching oil prices, Fed messaging, and developments in Iran negotiations closely.

Why this matters for crypto investors

Bitcoin's correlation with traditional markets and macroeconomic forces like interest rates and oil prices continues to shape its price movements. For investors, the latest slide underscores how vulnerable the asset can be to global geopolitical and monetary-policy developments.

Sources

• Bitcoin Magazine
• Reuters — Hormuz transits lowest over two months after attacks
• Reuters — Fed's Waller says more hikes needed
• Middle East Eye — Trump on Iran deal talks

Read also: Bitcoin Falls Below $81,000 as War Fears Push Oil Prices Higher