Bitcoin (BTC) Dips to $65,500 Amid Rising Oil Prices and Treasury Yields

Key Takeaways

• Bitcoin declined to approximately $65,500, marking a 0.7% decrease as crude oil and Treasury yields surged.
• West Texas Intermediate crude reached $88.60 per barrel, marking its peak since June 11.
• Polymarket shows the Digital Asset Market Clarity Act’s passage probability fell from 46% to 38% following Democratic lawmakers’ criticism.
• Treasury yields jumped higher, with the 2-year note reaching 4.31% and the 10-year hitting 4.66%.
• Bitcoin ETFs registered continuous inflows for seven consecutive sessions, totaling $981.2 million since July 14.

Bitcoin experienced a downturn to roughly $65,500 during early Thursday trading hours. This represents approximately a 0.7% decrease from midnight UTC levels. The cryptocurrency had previously touched near $66,700 during Wednesday’s session before retreating.

Bitcoin (BTC) Price

The broader cryptocurrency market mirrored this downward movement. Ether, solana, and XRP each registered declines in tandem with bitcoin’s pullback.

Energy markets emerged as a significant factor influencing the decline. West Texas Intermediate crude futures surged to $88.60 per barrel, representing the commodity’s strongest level since June 11.

Rising oil prices typically amplify inflationary pressures. This dynamic creates challenges for central banks considering monetary policy adjustments and potential rate reductions.

Bond Yields Reach Highest Levels in Months

Fixed-income markets showed similar movements in response to macroeconomic conditions. The two-year U.S. Treasury yield surged to 4.31%, reaching its strongest reading since February 2025.

Meanwhile, the 10-year Treasury yield advanced to 4.66%, its most elevated level since May. Increasing yields enhance the attractiveness of bonds relative to non-yielding assets such as bitcoin. This shift often prompts investors to reallocate capital from cryptocurrency holdings into traditional fixed-income securities.

10-Year Yield Futures,Jul-2026 (10Y=F)

International tensions contributed additional uncertainty to market sentiment. According to Axios reporting, U.S. military forces deployed a B-1 long-range bomber on Tuesday for strikes against facilities connected to Iran’s Islamic Revolutionary Guard Corps. The operation represented an escalation in scope compared to earlier military actions.

Legislative Prospects Fade for Clarity Act

Developments on the regulatory front also influenced market dynamics. A coalition of Senate Democrats voiced opposition to the latest version of the Digital Asset Market Clarity Act, citing inadequate ethics safeguards and missing provisions.

Prediction markets quickly incorporated this information. The probability of passage on Polymarket declined from 46% to 38%.

Senate Republicans unveiled their revised legislative draft on Wednesday. The updated text incorporated ethics language that received approval from the White House and President Trump. Senator Bernie Moreno characterized the provisions as “the most powerful ethics language in U.S. history.”

Notwithstanding the price decline, exchange-traded fund activity painted a contrasting picture. Analytics platform Santiment documented that Bitcoin ETFs have maintained positive inflows across seven consecutive trading sessions beginning July 14.

Santiment’s analysis revealed $981.2 million in cumulative net inflows throughout this period. This accumulation occurred while bitcoin approached the $66.3K level.

Santiment observed the previous comparable streak of ETF demand occurred in early October 2025. During that timeframe, bitcoin was advancing toward its record high of $126K.

The analytics firm emphasized this pattern doesn’t ensure identical outcomes. However, the company suggested sustained inflows may indicate recovering investor confidence following the substantial outflows witnessed during May and June.

Santiment identified a potential warning signal worth monitoring. The firm indicated current ETF activity supports favorable conditions for a potential rally toward $70K. Yet it cautioned that an exceptionally large single-session inflow could suggest overheated buying activity, a pattern that occasionally precedes local price peaks.

Bitcoin held steady around $65,500 during early Thursday sessions, with energy commodity prices and Treasury yields representing the dominant headwinds facing the market.

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