Bitcoin drops below $65,000 amid Middle East tension

Bitcoin fell below $65,000 on Thursday, July 23, as escalating geopolitical tensions in the Middle East triggered a broad retreat from risk assets. The cryptocurrency touched a three-day low of $64,799, a decline driven by surging oil prices and rising U.S. Treasury yields following attacks on commercial shipping and threats of military action.

The selloff was catalyzed by attacks from Iran-aligned Houthi forces on two Saudi oil tankers in the Red Sea. In response, President Donald Trump stated he was considering a "massive attack" on Iran, warning of consequences for Tehran and the Houthis. He later clarified that no final military decision had been made, and U.S. officials confirmed operational orders had not been issued. The attacks and rhetoric renewed fears over sustained disruption to global energy shipments, already strained by reduced traffic through the Strait of Hormuz.

Brent crude oil surged 7% to settle above $100 per barrel on July 23, its first close above that threshold since late May. The spike in energy prices intensified concerns about persistent inflation, which in turn reshaped expectations for U.S. monetary policy. According to the CME FedWatch Tool, the...