Bitcoin slips under $65,000 as oil spike hits risk assets

Bitcoin dropped below $65,000 as a jump in oil prices and US Treasury yields pushed investors away from risk assets. The move matters for crypto because it tightens financial conditions at a time when Bitcoin demand is already showing signs of fatigue.

Brent crude closed at $100.69 on July 23, its first settle above $100 since May, before easing to about $96.70 in European trading. The spike followed attacks on two Saudi oil tankers in the Red Sea and fresh threats from President Donald Trump against Iran and the Houthis. Markets reacted quickly. The 10-year US Treasury yield rose to about 4.7%, its highest since January 2025, while the S&P 500 fell 1.2% and the Nasdaq dropped 2.2%.

Higher energy costs can keep inflation pressure in place, which may limit the Federal Reserve's room to cut rates. CME FedWatch showed the chance of a quarter-point rate increase at the July 28-29 meeting near 40%.

Bitcoin also lost a near-term support point from ETFs. US-listed spot Bitcoin ETFs saw $225.2 million in net outflows on July 23, ending a seven-day inflow streak. CryptoQuant data also showed spot demand has been flat or negative since June, even as futures traders kept adding exposure at a slower pace.