Bitcoin slides below $65K as oil tops $100 a barrel

Bitcoin slid below $65,000 on July 23, extending a cautious retreat from risk assets as an explosion aboard an oil tanker in the Strait of Hormuz sent crude prices above $100 a barrel and revived inflation fears across global markets.

Oil Shock Rattles Markets

Brent crude soared more than 7% on Wednesday, surpassing $101 per barrel for the first time since late May, after Iran's Revolutionary Guard Corps declared the strait would remain closed following the tanker blast. U.S. West Texas Intermediate crude climbed above $92. The spike compounded weeks of escalating hostilities between Washington and Tehran, which have included U.S. airstrikes, a reimposed naval blockade, and the revocation of sanctions waivers on Iranian oil.aljazeera+2

NBC News reported that Houthi threats against Red Sea shipping added further pressure to energy markets on the same day. The oil surge pushed gas prices back above $4 per gallon in the United States.nbcnews+1

Treasury Yields and Rate Hike Bets Climb

The 10-year U.S. Treasury yield hovered near 4.63% on Wednesday, while the 30-year bond yield held above 5.13%, levels that Reuters earlier this month described as near 18-month highs for shorter-dated notes. Deutsche Bank's Jim Reid noted that the probability of a Federal Reserve rate hike at the July 28-29 meeting had climbed back to 26% by Tuesday's close, after falling to as low as 10% following a softer-than-expected CPI print the prior week.reuters+1

Money markets priced in a 69% chance of at least a quarter-point hike by September, according to the CME FedWatch tool. The Fed's benchmark rate currently sits at 3.50%-3.75%.cnbc+1

Bitcoin Caught in Risk-Off Crossfire

Bitcoin traded near $65,030 on July 24, down roughly 0.95% over 24 hours, after opening Wednesday around $65,900 according to CoinDesk. FXStreet noted the cryptocurrency held above its 50-day exponential moving average at $65,163 but remained capped below the 100-day EMA near $68,063.fxstreet+2

The decline came despite seven consecutive days of inflows into U.S. spot Bitcoin ETFs, with $68.99 million recorded on Wednesday alone. CoinDesk reported that bitcoin dominance climbed to 59% as capital rotated away from altcoins.coindesk+1

The broader trajectory reflects a difficult year for crypto: Bitcoin hit a 21-month low near $58,000 on July 1 amid heavy ETF outflows before recovering through mid-July. Analysts at FXStreet identified horizontal support around $64,004 as the next key level if the current pullback deepens.pluang+1