Bitcoin drops below $65,000 as oil prices surge

Bitcoin fell sharply on Thursday, July 23, 2026, as a surge in global oil prices and rising geopolitical tensions revived fears of persistent inflation, pressuring risk assets across financial markets. The cryptocurrency dropped from a level near $66,700 the previous day to trade below $65,000, erasing gains driven earlier in the week by optimism surrounding U.S. cryptocurrency legislation.

The decline coincided with a significant spike in energy prices. The global benchmark Brent crude oil briefly surpassed $101 per barrel, while U.S. West Texas Intermediate crude climbed to approximately $90, reaching its highest level in weeks. Analysts linked the surge to escalating Middle East tensions, including Houthi attacks on commercial vessels in the Red Sea and statements from U.S. President Donald Trump signaling potential military escalations against Iranian targets. Higher energy costs stoked concerns that the Federal Reserve may need to maintain elevated interest rates for longer to combat inflation, a scenario that diminishes the appeal of non-yielding assets like Bitcoin.

Concurrently, U.S. Treasury yields climbed to multi-month highs, with the 10-year yield reaching 4.66%. The...