Bitcoin's price slipped further below $81,000 on Thursday, extending its decline alongside other assets as oil prices continued climbing and the U.S. Federal Reserve struck a hawkish tone.

The leading cryptocurrency recently traded at $81,203 after dipping to nearly $80,922 at one point during Thursday morning trading in New York, leaving it within roughly $1,000 of the $80,000 level. Over the past 24 hours, bitcoin has shed nearly 3% of its value, and it is down 4% over a seven-day period.

The drop marks a sharp reversal from last week, when bitcoin appeared to be closing in on the $90,000 mark following a phenomenal September rally and one of its best quarters in years. October — a month that has historically delivered strong returns for bitcoin investors and is nicknamed "Uptober" — is off to a slow start amid surging oil prices.

The price of Brent crude jumped this week following renewed attacks on tankers in the Strait of Hormuz. U.S. President Trump also hinted that talks with Iran were not going the way he wanted. Tanker security in the strait and the direction of U.S.-Iran talks thus remain the key variables for oil's near-term trajectory.

Surging oil prices have hurt bitcoin and other "risk-on" assets this year, at least in the short term, because they increase the chances of the U.S. central bank raising interest rates. Bitcoin has historically performed well in low-interest-rate environments, which tend to bring increased liquidity.

In a speech Thursday, Federal Reserve Governor Christopher Waller said further interest-rate hikes will likely be needed to slow inflation, though he added that there was "flexibility" about the pace of increases. The flexibility caveat leaves the pace and timing of further tightening an open question.

Oil prices have jumped since the U.S. and Israel attacked Iran in February, which prompted Iran to close the Strait of Hormuz in retaliation. Higher oil prices have meant sticky and climbing prices around the world, including in the United States.

Bitcoin's price in September, however, appeared to shrug off comments by the new Federal Reserve Chair, Kevin Warsh, rallying even as the central bank raised interest rates.

Despite the current dip, the coin has entered a bull market again, according to some analysts. The largest cryptocurrency spent most of 2026 in a bear market after reaching record highs in October 2025. It is currently more than 30% below its record of $126,080.

This article first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.