Bitcoin Falls 2.2% as Ukraine and Iran Attacks Push Oil to One-Month High

Bitcoin's price remained capped on Wall Street after failing to hold above $84,000, as rising oil prices weighed on the market.

Bitcoin prices remained limited after failing to hold above $84,000 on Wall Street due to rising oil prices.

Bitcoin (BTC) gave back early-week gains on Wall Street on Monday as doubts about the Russia-Ukraine "energy ceasefire" intensified.

Bitcoin/USD hit $84,254 on Bitstamp, its highest level since Wednesday, before falling as much as 2.2 percent, TradingView data showed.

BTC/USD hourly chart. Source: Cointelegraph/TradingView

The withdrawal came as Ukrainian President Volodymyr Zelensky accused Russia of continuing to target energy infrastructure despite US President Donald Trump saying he would end such attacks. Elsewhere, Iran reported that an oil tanker was hit and caught fire in the Strait of Hormuz.

Oil prices reacted strongly, with WTI crude surpassing $94 a barrel and Brent crude reaching $107.25, the highest price since September 16.

CFDs on Brent crude oil four hour chart. Source: Cointelegraph/TradingView

The gains come as markets brace ahead of key US inflation data in the form of the Consumer Price Index (CPI) and Producer Price Index (PPI) due on Wednesday and Thursday respectively. As Cointelegraph reported, the CPI is particularly sensitive to rising oil prices.

Robin Brooks, former chief FX strategist at Goldman Sachs, argued that oil markets had priced in an "excessive risk premium", citing the improvement in Hormuz transit volume.

The volume of oil outside the Persian Gulf reached a maximum of 16.5 megabytes per day compared to 13 million barrels per day a few weeks ago. "This is still much better than the peak of the war in March and April, but oil prices are back at their highs."

Looking at possible bitcoin price targets, trading firm QCP Capital reported ambivalence in the bitcoin options markets, with a "defensive" position along with traders considering the possibility of a bullish breakout.

“Implied volatility has remained flat even as the spot has returned to range, while risk reversals have shown a lower premium for puts than usual. "Read together, the market looks less defensive but still priced for a potential breakout." He summarized in his last analysis.

Trader and analyst Rekt Capital identified $83,400 as local resistance on the day, reflecting the area around $77,000 from mid-August to September 21, when BTC/USD moved higher.

BTC/USD 1-day chart. Source: Rekt Capital at

CoinGlass data shows that the requested liquidity on exchanges is around $84,500, bringing the total to $180 million at that level. The bid price at the time of writing was around $82,000 and the price was currently moving towards that level.