Key Highlights
- Bitcoin declined to approximately $65,500, marking a 0.7% decrease amid rising oil prices and Treasury yields.
- WTI crude oil surged to $88.60 per barrel, marking its peak since June 11.
- Polymarket probability for the Digital Asset Market Clarity Act passage declined from 46% to 38% following Senate Democratic opposition.
- U.S. Treasury yields advanced, with the 2-year reaching 4.31% and the 10-year touching 4.66%.
- Bitcoin ETFs recorded seven consecutive days of positive inflows, accumulating $981.2 million since July 14.
Bitcoin experienced a pullback to approximately $65,500 during early Thursday trading hours. The digital asset registered a 0.7% decline from its midnight UTC levels. This retreat came after BTC touched a local peak near $66,700 during the previous trading session.
The broader cryptocurrency market mirrored bitcoin’s downturn. Leading altcoins including Ether, Solana, and XRP experienced simultaneous declines alongside BTC.
Energy markets exerted significant influence on the price action. West Texas Intermediate crude oil futures surged to $88.60 per barrel, representing the commodity’s strongest performance since June 11.
Elevated oil prices typically contribute to inflationary pressures. This dynamic complicates the ability of central banking institutions to implement rate reductions.
Bond Market Shows Strength as Yields Advance
Fixed-income markets exhibited parallel reactions to macroeconomic conditions. The U.S. two-year Treasury yield advanced to 4.31%, establishing its highest position since February 2025.
The benchmark 10-year yield climbed to 4.66%, reaching levels unseen since May. Rising yields enhance the appeal of bonds relative to non-yielding assets like bitcoin. This shift in relative value can prompt investors to reallocate capital from cryptocurrency markets into fixed-income instruments.
Global security developments contributed to market uncertainty. According to Axios, the U.S. military deployed a B-1 long-range bomber aircraft on Tuesday for operations targeting facilities associated with Iran’s Islamic Revolutionary Guard Corps. The scope of these operations exceeded the scale of prior military actions.
Regulatory Uncertainty Grows as Clarity Act Support Weakens
Legislative developments also influenced market sentiment. A coalition of Senate Democrats issued statements criticizing the most recent version of the Digital Asset Market Clarity Act, citing insufficient provisions regarding ethics and oversight.
Prediction markets immediately reflected this uncertainty. Polymarket probabilities for successful passage of the legislation declined sharply from 46% to 38%.
Senate Republicans unveiled a revised draft on Wednesday. The updated version incorporated an ethics framework that received approval from both the White House and President Trump. Senator Bernie Moreno characterized it as “the most powerful ethics language in U.S. history.”
Contrasting with spot price weakness, exchange-traded fund flows painted a more optimistic picture. Analytics provider Santiment documented that Bitcoin ETFs have maintained seven consecutive trading sessions of positive inflows beginning July 14.
Santiment’s tracking indicated $981.2 million in aggregate net inflows throughout this period. These flows coincided with bitcoin’s advance toward $66.3K.
Santiment observed that the previous occasion ETF demand sustained such an extended streak occurred in early October 2025. During that timeframe, bitcoin was approaching its $126K record high.
The analytics firm cautioned against assuming historical patterns will necessarily recur. However, it emphasized that sustained inflows may indicate recovering confidence following the substantial outflows witnessed during May and June.
Santiment also identified a potential warning signal. The firm assessed that current ETF dynamics support a potential rally toward $70K. Yet it cautioned that an abrupt, disproportionately large single-session inflow could indicate excessive buying enthusiasm, which historically has preceded local price peaks.
Bitcoin traded near $65,500 during early Thursday sessions, with energy market dynamics and Treasury yield movements continuing to apply downward pressure.
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