Bitcoin Closes at $81,652.01 as Shipping Risks Escalate and Stocks Come Under Pressure

Key Facts

Bitcoin closed at $81,652.01 on October 23, up from $81,416.09 on October 22, but below its October 21 close of $84,093.42, according to EL7 data. The move left the cryptocurrency between a modest daily rebound and a retreat from its level two days earlier, as U.S. stocks fell and oil surged on concerns about war with Iran and shipping risks in the Strait of Hormuz. The S&P 500 fell 1.2% in Thursday’s session, its worst day since July, while the Nasdaq dropped 2.6%, according to The Associated Press. The agency attributed the pressure to falling technology stocks and concerns about war with Iran. In Friday trading, S&P 500 futures fell 0.3%, Dow Jones futures 0.6% and Nasdaq futures 0.1%.

Weakness in riskier assets coincided with a fresh surge in energy prices. Brent crude rose 4% on Thursday to $113.17 a barrel, after reaching a five-month high, amid concerns about war with Iran, according to The Associated Press. On Friday morning, Brent rose 1.6% to $114.92 a barrel, following Thursday’s gains, compared with a price below $97 at the start of October. The moves link geopolitical tensions with energy supply risks watched by markets, while Bitcoin remained below its October 21 close. The agency said the rise in oil came amid concerns that the war would continue and affect the global energy sector.

Security concerns in the Gulf reflect a broader series of incidents, rather than a single event. Lloyd’s List Intelligence counted at least 28 reported or confirmed attacks or security incidents in the Strait of Hormuz and surrounding waterways in October through October 22. Iran also said seven oil tankers were damaged in the strait during the night of October 21 to 22, while The Associated Press said it was unable to independently verify the account. The agency quoted Lloyd’s List Intelligence as saying operators active in the Gulf “show little sign of withdrawal” despite the recorded attacks. The report said October’s number of attacks on ships was the highest since the war began. This places shipping disruption among the factors behind higher oil prices and market volatility during the week.

Trading indicators show that pressure extended into the period before Friday’s session opened, with futures on all three major U.S. indexes falling. This followed Thursday’s losses of 1.2% for the S&P 500 and 2.6% for the Nasdaq, in a session The Associated Press described as the broad index’s worst since July. The agency linked the losses to weakness in technology stocks and concerns about war with Iran, while Brent surged to $113.17 a barrel the same day. The next day, oil reached $114.92 a barrel, continuing its rise from below $97 at the start of the month. This came as Bitcoin closed slightly above its October 22 level but below its October 21 close.

Developments in the strait remain a focus of international attention, alongside their impact on energy markets. United Nations spokesperson Stéphane Dujarric said commercial ships should not be targeted, calling on Washington and Tehran to pursue diplomacy to reopen the strait and ease tensions. He said: “For the people of the region and the wider world, we need this waterway reopened and tensions reduced.” The call comes amid at least 28 attacks or security incidents recorded in October through October 22, and Iran’s account that seven tankers were damaged, which The Associated Press was unable to independently verify. The safety of the passage remains directly relevant to oil flows, as prices rose on two consecutive days.

Markets will next focus on the Federal Reserve’s Federal Open Market Committee meeting on October 27 and 28, according to the central bank’s calendar. The press conference is scheduled for October 28. The meeting follows Brent’s rise to $114.92 a barrel on Friday morning, Thursday’s stock losses and a decline in futures during Friday trading. Markets are tracking monetary policy developments alongside energy risks and geopolitical tensions, with the Nasdaq down 2.6% in the previous session. Bitcoin closed at $81,652.01, above its October 22 close and below its October 21 close.