Bitcoin Falls 2.2% as Ukraine, Iran Tensions Lift Oil

Bitcoin fell 2.2% after reaching $84,254 on Monday, its highest price since Wednesday. The decline came as Brent crude rose to $107.25, its highest level since Sept. 16, while West Texas Intermediate crude moved above $94 a barrel.

Ukraine’s President Volodymyr Zelenskyy accused Russia of continuing to target energy infrastructure despite a moratorium on such strikes announced by U.S. President Donald Trump. Iran separately reported that an oil tanker had caught fire in the Strait of Hormuz, a major route for oil shipments.

The oil-price gains came before key U.S. inflation data. The Consumer Price Index is due Wednesday, followed by the Producer Price Index on Thursday. Changes in fuel costs can affect inflation readings and expectations for U.S. interest rates.

Robin Brooks, a former chief foreign exchange strategist at Goldman Sachs, wrote that oil prices included more risk premium than current shipping volumes appeared to justify. Oil volumes leaving the Persian Gulf were about 13 million barrels per day, down from 16.5 million barrels per day several weeks earlier. Brooks noted that the current volume remained above levels recorded during the height of the war in March and April.

Bitcoin options traders maintained defensive positions while keeping the possibility of a rally open. Implied volatility remained firm as Bitcoin returned to its recent trading range. Options pricing showed a smaller-than-usual premium for put contracts, which are used to hedge against price declines.

QCP Capital identified $87,000 as a level that could open the way to $94,000 if Bitcoin moved above it decisively. Rekt Capital placed near-term resistance at $83,400, a level that previously matched a trading area near $77,000 before Bitcoin moved higher.

Exchange order-book data showed about $180 million in sell orders near $84,500. Buy orders were building near $82,000 as Bitcoin declined.