Bitcoin fell to a three-day low of $64,799 following renewed geopolitical turmoil in the Middle East. The drop came after Iran-backed Houthi rebels launched missile and drone attacks against two Saudi tankers in the Red Sea, sparking fears of a wider conflict.
US President Donald Trump responded with talk of a "massive strike" against Iran, warning that the country ‘‘has not yet felt enough pain.’’ He also indicated Israel would quickly join the confrontation if asked, heightening regional tensions. The US military continued targeted strikes on Iranian-linked positions for the 13th consecutive night.
Market Reactions and Rising Energy Costs
The fallout pushed Brent crude prices above $100 per barrel for the first time since May, climbing 7 percent to $100.69 on July 23. West Texas Intermediate oil surged 6.3 percent in the same session. This energy price jump reignited inflation fears and spooked Wall Street, causing US 10-year Treasury yields to rise to 4.7 percent.
Bitcoin, which had been consolidating recent gains, got caught in this broader risk-off sentiment. Expectations for Federal Reserve rate cuts faded as bond yields climbed, pressuring crypto markets. Bitcoin spot ETFs saw net outflows of $225.2 million, ending a weeklong streak of inflows.
The situation echoes ongoing challenges faced by crypto assets amid macroeconomic shifts and geopolitical risks, raising questions about their ability to remain insulated.
This material is for informational purposes only and does not constitute financial advice.
