Bitcoin Slides Below $84K as Oil and Yields Climb, While IRS Clears Staking for Crypto Trusts

Bitcoin Falls as Oil and Treasury Yields Rise

Bitcoin traded near $84,300 in early trading and touched a low of about $83,650, down roughly 1.5% over 24 hours. Later in the US session, losses deepened, and some market trackers showed the asset roughly 4% lower on the day and below $83,000. Ether changed hands near $2,600 in the morning, and the total crypto market capitalization stood close to $2.95 trillion.

Energy markets set the tone. Brent crude climbed back above $101 a barrel amid a series of tanker attacks and renewed concerns about shipping routes in the Middle East, including the Strait of Hormuz, which handles roughly one-fifth of global oil supply. At the same time, the 10-year US Treasury yield rose to about 5.3%, and the dollar index gained to around 102. Higher yields and a stronger dollar typically weigh on speculative assets such as crypto.

Leveraged Longs Amplify the Drop

Derivatives trading accelerated the decline. According to CoinGlass data, more than $403 million in leveraged long positions were liquidated within a single hour, accounting for about 97% of all liquidations in that period. Over 24 hours, total liquidations reached roughly $555 million at the time of the report, with longs making up the vast majority. When prices fall, exchanges automatically close overleveraged positions, which adds more selling pressure and pushes prices lower still.

Bitcoin had repeatedly failed to hold above $87,000 in recent sessions. Analysts point to a support zone between $83,300 and $84,600, while buyers would need to reclaim roughly $86,700 to open the way for another push higher.

Fed Minutes and ETF Flows in Focus

Traders are now watching the Federal Reserve's September meeting minutes, due later Wednesday. The central bank raised rates by 25 basis points at that meeting, and futures markets currently price only about a 20% chance of another increase in October, though expectations for a hike by December remain higher.

Not every signal is bearish. US spot Bitcoin ETFs recorded about $118.8 million in net inflows on October 6, while Ether ETFs saw outflows of roughly $201.9 million. On-chain data from Santiment showed that 24,073 BTC left exchanges on Monday, the largest single-day withdrawal since March 1, which often points to long-term accumulation.

IRS Updates Staking Safe Harbor for Crypto Trusts

Away from price action, Washington delivered a constructive headline. On October 6, the IRS issued Revenue Procedure 2026-20, which updates and replaces the safe harbor published in November 2025. Under the new procedure, qualifying investment trusts and grantor trusts can stake proof-of-stake digital assets without losing their federal tax classification.

Eligibility comes with strict conditions. They cover exchange listing, SEC disclosures, custody arrangements, the use of staking providers, liquidity management and the distribution of staking rewards. The IRS also stressed that the guidance is narrow: it does not create a general tax exemption for staking income and does not address tax questions outside its stated scope.

For fund sponsors, the clarity matters. Many crypto exchange-traded products holding proof-of-stake assets, including Ether-based funds, have been moving toward structures that include staking, and a predictable tax framework lowers a major barrier for them.

What It Means for US Investors

Today's session shows two forces at work. In the short term, macro pressure from oil, yields and leverage is driving volatility. In the longer term, regulatory clarity is steadily improving the conditions for institutional crypto products in the United States. Investors should watch the Fed minutes, the $83,300–$84,600 support area and further guidance from regulators.