Bitcoin gave back its gains from earlier in the week on Thursday as a sharp rise in oil prices revived concerns that persistent inflation could keep U.S. interest rates higher. The cryptocurrency fell nearly 4% over 24 hours in New York and reached $81,331, according to Bitcoin Magazine.
The decline came during October, sometimes called “Uptober” by crypto investors because bitcoin has historically been expected to perform strongly during the month. So far, however, the market has been unable to sustain that momentum.
Oil shock changes the market mood
Bitcoin had been approaching $85,000 on Wednesday as investors returned to technology stocks following SpaceX earnings linked to Elon Musk. That optimism faded after renewed conflict in the Middle East sent oil prices higher, with crude moving above $110.
The source of the latest market concern was reports of additional attacks by Yemen’s Houthis on Saudi Arabia. Investors feared that further escalation could disrupt oil supplies and broaden the regional conflict. Stocks also moved lower as markets assessed the potential economic impact.
Higher energy prices can increase inflation pressures, particularly in the short term. That matters for bitcoin because investors often treat it, along with technology shares and other assets, as a risk-sensitive investment. If inflation remains elevated, the U.S. Federal Reserve may face greater pressure to keep interest rates high or raise them further.
Why interest rates matter for bitcoin
Bitcoin has previously benefited from lower interest rates and abundant liquidity. When borrowing costs are lower, investors may be more willing to hold assets viewed as riskier, and bitcoin has at times traded in the same direction as technology stocks and the Nasdaq.
War-related headlines have generally weighed on bitcoin, while hopes for a ceasefire have supported it. The cryptocurrency fell sharply after the United States and Israel first attacked Iran in February and remained unsettled as further war-related news emerged in March and April.
The oil surge is also adding to what U.S. politicians have described as an affordability crisis. Americans are due to vote on November 3, while inflation remains one of the most prominent political issues. The Federal Reserve has said that bringing inflation down is its highest priority.
Bitcoin’s broader position
Thursday’s retreat does not erase bitcoin’s recent strength. The asset had just completed its best quarter in years, and analysts have described it as being in a bull market after it moved above its 365-day moving average.
Bitcoin also absorbed a U.S. Federal Reserve interest-rate increase last month, while lawmakers blocked the Clarity Act, a major proposed piece of crypto legislation. Those developments had not stopped the cryptocurrency from rising before the latest oil-driven sell-off.
Moneyiar market picture
Moneyiar data at 11:38 p.m. on October 22, 2026, showed Bitcoin at $81,208.783536513, down 3.61% over 24 hours and 1.11% over seven days. Monad was at $0.0209731284, down 5% in 24 hours and 8.81% over seven days. Aethir stood at $0.0058631403, down 4.8% and 0.68%, respectively. REAL was priced at $0.1847972829, down 1.92% over 24 hours but up 0.3% over seven days, based on Moneyiar data recorded at 11:39 a.m. on October 20, 2026.
