Wednesday’s top stories: Bitcoin broke below $85,000 as traders de-risked ahead of tonight’s Federal Reserve meeting minutes, oil stayed above $101 as attacks on tankers in the Strait of Hormuz intensified, and the US Treasury formally withdrew its proposed rules on self-hosted crypto wallets and mixers.
Bitcoin breaks below $85,000, over $403 million in longs liquidated
Bitcoin fell to between $83,648 and $84,303 overnight, a one-week low and down about 1.5% in 24 hours. More than $403 million in leveraged long positions were liquidated within a single hour. The drop was driven by Brent crude back above $101, higher US Treasury yields and a firmer dollar, with traders reducing risk ahead of the Federal Reserve’s September meeting minutes due at 11pm PKT today. Ethereum held near $2,619.
Oil holds above $101 as Hormuz tanker attacks intensify
Brent traded around $101.63 to $101.80 and WTI near $90.24 to $90.56, as Iran stepped up tanker attacks in the Strait of Hormuz. The UK Maritime Trade Operations agency reported nine incidents in October so far, already half of September’s combined Hormuz and Gulf total. The Saudi-led coalition said it intercepted and destroyed a Houthi ballistic missile aimed at Khamis Mushait, and confirmed Monday’s Houthi attacks on the Jazan and Najran airports. In a counter-signal, Vice President Vance said Tehran is hitting some ships but “not enough to stop the flow of oil and gas,” and said Washington remains open to an agreement, with talks involving President Pezeshkian and Foreign Minister Araghchi. Official US inventory data is due later on Wednesday.
US Treasury drops proposed rules on self-hosted wallets and mixers
The US Treasury formally withdrew its proposed rules on self-hosted cryptocurrency wallets and crypto mixers, a quiet regulatory positive for the industry. The move is distinct from the CFTC’s recent no-action relief allowing US exchanges to launch perpetual futures. Next catalysts for crypto markets are the Fed minutes tonight and the October 14 CPI report, while the TOKEN2049 conference continues in Singapore on October 7-8.
Market snapshot
Bitcoin traded around $84.3k, under $85k for the first time since its string of rejections near $87k. Ethereum was near $2.62k, XRP near $1.47 and SOL near $118.8, with total crypto market capitalization around $2.95T, down 1.8% in 24 hours. Brent held near $101.7. In Gaza, there was no verified deal announcement; Sharm El Sheikh talks remain at what officials describe as a “decisive phase.” No new China-UK or China-USA tariff moves were reported. EU leaders meet on October 8, and the UK-Israel consulate deadline falls on Thursday, October 8.