Both major cryptocurrencies are falling this morning as hawkish signals from the Federal Reserve collide with rising oil prices and a broader retreat from risk.
Where Prices Stand Today
As of mid-morning on October 7, Bitcoin (BTC) was trading around $83,311, down approximately 2.5% over 24 hours, after touching an intraday low of $83,065. Ethereum (ETH) fared worse, falling to around $2,564 — down roughly 4.7% over 24 hours, having dipped as low as $2,542. The total crypto market cap dropped 3.0% to approximately $2.92 trillion, while 24-hour trading volume surged 34.7% to $106.22 billion, per CoinGecko data — a sign of active selling rather than quiet drift.
What Is Driving the Move
Fed minutes are the main catalyst. Minutes from the September 15–16 FOMC meeting, released this week, showed that most participants believed another rate increase would "likely be needed by year-end." The Fed raised its target range to 3.75%–4.00% in September and signalled it is not done yet — a direct headwind for risk assets.
Oil and geopolitics are adding pressure. Renewed Iranian attacks in the Strait of Hormuz dashed hopes that Gulf shipping had normalised. Brent crude climbed back above $101 per barrel, and the 10-year US Treasury yield rose above 5.3% — both conditions that historically push investors away from speculative assets.
Liquidations were significant. According to Coinglass data from October 7, total liquidations reached approximately $712.85 million, affecting around 124,000 traders. Long positions dominated the forced selling.
Bullish Signal Still on the Table
On October 1, Citigroup raised its 12-month price target for Bitcoin to $113,000 (from $82,000) and for Ethereum to $3,028 (from $2,240), citing resumed ETF inflows and a stronger macro backdrop. Spot Bitcoin ETFs have taken in over $1.5 trillion in cumulative flows so far in 2026, a record.
What This Means
Today's drop is macro-driven, not a crypto-specific event — the same rate-hike fears hitting bonds and equities are hitting digital assets. For traders: watch the October 28 Fed decision closely; a hold would likely stabilise crypto, while another hike could push BTC toward the $78,000–$80,000 range. For longer-term holders, Citigroup's $113,000 target reflects the structural ETF demand story that remains intact beneath the short-term noise.