Bitcoin slid below $83,000 on Wednesday as a surge in oil prices and rising U.S. borrowing costs weighed on markets, dragging down a broad range of assets.

The largest cryptocurrency was trading at $83,062 on Wednesday morning in New York, down nearly 4% over a 24-hour period, after at one point dropping as low as $82,823. Last week, the coin nearly touched a high of $87,086.

Over the past 24 hours, nearly $178 million in bets on the bitcoin price have been closed, according to data provider Coinglass. Liquidations occur when exchanges forcibly close leveraged positions that have moved against traders — a dynamic that can accelerate short-term price swings.

The drop came as U.S. mortgage rates climbed for a seventh straight week to their highest level in nearly three years. The rise in borrowing costs was prompted by surging oil prices, stoking fears that the Federal Reserve will hike rates again; the U.S. central bank raised interest rates just last month. Mortgage rates are widely watched as a barometer of borrowing costs across the U.S. economy.

Historically, bitcoin's price has performed well in a low interest rate environment and has proved sensitive — at least in the short term — when the Federal Reserve has threatened to raise borrowing costs.

Brent crude jumped above $102 a barrel after Iran stepped up attacks on vessels in the Strait of Hormuz, a chokepoint that carries a substantial share of the world's seaborne oil. Gold, silver, and stocks also dipped on Wednesday as multiple assets took a hit on the news.

The rise in oil prices is fueling what many politicians are calling an affordability crisis in the U.S. Americans will go to the polls on November 3, and surging inflation is one of the hottest topics ahead of the vote.

Despite Wednesday's dip, the asset just posted its best quarter in years, and analysts have said bitcoin is now in a bull market after rising above its 365-day moving average, a long-term trend line often used to separate bull and bear phases.

Last month, the biggest digital asset shrugged off the Federal Reserve raising interest rates and lawmakers blocking landmark crypto legislation, the Clarity Act.

Attention now turns to further signals from the Federal Reserve on rates and to developments around the Strait of Hormuz — the two forces behind this week's broad market pressure.

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