Bitcoin Dips Below $81K as Crude Surges and Fed Signals Hawkish

Bitcoin extended its decline on Thursday, moving lower alongside other markets as oil prices continued to rise and the Federal Reserve delivered a hawkish statement.

The leading cryptocurrency was recently trading at $81,203, after falling to roughly $80,922 earlier in the New York session.

Over the last 24 hours, bitcoin has lost nearly 3% of its value, and it is down 4% compared with seven days ago.

Only last week, the asset appeared to be approaching the $90,000 level following a strong September rally and one of its best quarterly performances in years.

But Uptober — the month that historically brings strong returns for bitcoin investors — is off to a sluggish start amid rising oil prices.

This week, Brent crude has surged after fresh attacks on tankers in the Strait of Hormuz, and U.S. President Donald Trump indicated that talks with Iran were not progressing as he had hoped.

A higher oil price has weighed on bitcoin and other risk-on assets this year, at least in the near term, because it raises the likelihood that the U.S. central bank will increase interest rates. Bitcoin has historically performed well in a low-rate environment, which boosts liquidity.

In a speech on Thursday, Federal Reserve Governor Christopher Waller stated that additional interest-rate hikes are probably necessary to bring inflation down, though he added that there is “flexibility” regarding the speed of those increases.

Oil prices have climbed since the U.S. and Israel launched attacks on Iran in February, prompting Tehran to close the Strait of Hormuz in retaliation. The resulting higher energy costs have contributed to persistent and rising prices globally, including in the United States.

In September, however, bitcoin’s price appeared to shrug off remarks from the new Federal Reserve Chair, Kevin Warsh, and rose even after the central bank raised interest rates.

Despite the current decline, some analysts argue that bitcoin has reentered a bull market. The largest cryptocurrency spent most of 2026 in a bear phase after hitting record highs in October 2025. It now sits more than 30% below its all-time high of $126,080.