Bitcoin surged then fell back, dropping over 2%; oil prices rose to near one-month highs; escalating Middle East tensions heightened market risk aversion.

BlockBeats news, October 13 — Bitcoin rose to $84,254 on Monday before pulling back, at one point falling as much as 2.2%. Uncertainty over the prospects for an energy ceasefire between Russia and Ukraine, an oil tanker attack in the Strait of Hormuz, and other events intensified market concerns about energy supply. Brent crude rose intraday to $107.25 per barrel, the highest level since September 16, while WTI crude broke above $94 per barrel.

The United States will release September CPI and PPI data this week, and rising oil prices have further heightened market worries about a rebound in inflation. Former Goldman Sachs chief FX strategist Robin Brooks, however, believes that given the improvement in traffic through the Strait of Hormuz, current oil prices may be pricing in an excessively high risk premium.

On the trading front, QCP Capital noted that the Bitcoin options market presents a mix of caution and bullish expectations, with traders adopting defensive positions on the one hand while still retaining expectations for an upward price breakout on the other. The firm said that if BTC effectively breaks above $87,000, the next target could point to $94,000. On-chain and exchange liquidity data show that there is about $180 million in sell-side liquidity near $84,500, while there is buy-side support near $82,000.