Bitcoin dropped 1.4% from an intraday peak of $66,300 to $65,368 on July 23, putting the $65,000 support level back under pressure just as oil prices sent fresh inflation signals through global markets.
West Texas Intermediate crude climbed nearly 4% to around $90 a barrel that same day, its fifth consecutive session of gains. Brent edged close to $99 after Yemen's Houthi rebels claimed attacks on two Saudi tankers, and U.S. President Donald Trump warned that Washington would strike Iranian infrastructure each time Tehran targeted vessels in the Strait of Hormuz. Iranian authorities fired back with threats against U.S.-linked energy assets across the region. Energy traders spooked. Bitcoin traders followed.
The concern is straightforward: higher oil prices keep U.S. inflation elevated, giving the Federal Reserve less room to cut rates. If Treasury yields climb on expectations of tighter policy for longer, assets without a fixed yield, including Bitcoin, tend to suffer.
Regulatory clouds added to the pressure. Senate Democrats pushed back on parts of the Digital Asset Market Clarity Act, and Polymarket traders put the odds of the bill passing into law by 2026 at roughly 37%. BitMEX separately announced it would shut down its derivatives exchange on September 23 after a strategic review by parent company HDR Global Trading, asking remaining users to close positions and withdraw funds before that date.
Not everything pointed down. U.S. spot Bitcoin ETFs logged $69 million in net inflows on July 22, their seventh straight positive session according to SoSoValue. The streak brought combined inflows to about $1 billion for the period, though that number still looks modest against the $6.9 billion that left the funds during May and June.
On the chart, BTC failed to hold above $66,000, and 4-hour momentum weakened below the $66,800 resistance. A clean break below $65,000 opens a path toward liquidity near $64,500, with the next meaningful moving-average support sitting at $63,170.
This article is for informational purposes only and does not constitute financial advice. Crypto markets are volatile; always do your own research before making any investment decisions.
