Bitcoin Slides Below $65,000 as Oil Spikes and Tensions Rise

Bitcoin dipped below $65,000 this week as global markets reacted to surging oil prices and rising Treasury yields. Crude oil recently topped $100 a barrel following attacks on Saudi tankers in the Red Sea. In response, Donald Trump threatened military action against Iran, sparking fears of prolonged energy supply disruptions and further geopolitical instability.

The broader financial impact was swift. The 10 year US Treasury yield climbed to 4.7 percent, while stocks saw notable losses. Investors are now concerned that higher energy costs will keep inflation sticky, forcing the Federal Reserve to maintain high interest rates. Markets are already pricing in a 40 percent chance of a rate hike during the upcoming July meeting.

This macro environment is hitting Bitcoin right as its recent momentum fades. US spot Bitcoin ETFs recorded over $225 million in net outflows on July 23, ending a week of consistent gains. On chain data also shows a weakening in spot demand, leaving the price performance increasingly reliant on the derivatives market.

Looking ahead, traders should watch the 10 year Treasury yield and crude oil prices. If yields continue to climb toward 5 percent, Bitcoin may face further selling pressure. For now, the market remains in a defensive mode as traders balance potential conflict in the Middle East against tightening monetary conditions at home.