Investing.com -- Bitcoin, the largest cryptocurrency, fell 2.7% on Wednesday, hitting its lowest level since Oct. 2, as renewed Iranian attacks in the Strait of Hormuz dimmed hopes that shipping through the waterway would return to pre-war levels.

Brent crude rose above $102 a barrel, adding to concerns that higher energy prices could fuel inflation and keep interest rates higher for longer.

Ether slumped 4.9%, while XRP fell 3.8% and Solana lost 2.1% as of 06:51 ET (10:51 GMT) as a wave of forced selling swept across crypto trading platforms.

Crypto-linked shares also fell in premarket trading, namely, Coinbase Global Inc slid 2.3%, Robinhood Markets Inc dropped 2% and Block Inc lost 0.7%.

Higher oil prices are fuelling inflation concerns, raising expectations of interest rate hikes from major central banks, a scenario that could weigh on cryptocurrencies.

Crude prices rose sharply this week on concerns about further supply disruptions in the Middle East, while bad weather in the Gulf of Mexico also threatened U.S. production.

Government bond yields rose sharply on the rate-hike prospect. The U.S. 10-year Treasury yield climbed above 5.3%. Yields cooled slightly this week but remained near recent peaks, keeping pressure on crypto.

Bitcoin had traded in a narrow range in October after a strong third quarter and remains well below its $126,000 peak of a year ago. Hopes for more crypto-friendly U.S. regulation did little to lift prices, while crypto lagged record highs on Wall Street, where AI stocks drew most attention.

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