Key Highlights
- Bitcoin plunged to $64,799 on Thursday, July 23, marking a three-day low
- President Trump issued warnings of a “massive attack” against Iran after Houthi attacks on Saudi tankers
- Brent crude surged past $100 per barrel, intensifying inflation worries
- Probability of a Federal Reserve rate increase in July soared from 12% to approximately 40% within seven days
- Market analysts remain divided, with bullish targets at $73K and bearish calls for positions under $65K
Bitcoin experienced a sharp decline below the $65,000 threshold on Thursday as escalating geopolitical friction between Washington and Tehran triggered widespread selling across risk-sensitive assets.
The BTC/USD pair touched an intraday bottom at $64,799 on the Bitstamp exchange, representing a 1.52% decline, based on TradingView market data.
The downturn followed President Donald Trump’s statement indicating he is “considering a massive attack” targeting Iran. These comments emerged following attacks on Saudi Arabian oil vessels in the Red Sea by Iran-backed Houthi militants.
In a Truth Social post, Trump expressed being “very disappointed” with the Houthis and signaled potential repercussions for Iran. He mentioned that Israel “would join in two minutes” if requested, though emphasized “we don’t need anybody.”
White House officials clarified that no definitive military action has been authorized, with two government sources confirming operational orders remain unissued.
Brent crude prices broke through the $100 per barrel threshold, reaching levels not seen since early June. This dramatic spike is amplifying anxieties regarding accelerating inflation in the United States.
Federal Reserve Rate Hike Probabilities Surge
Growing inflation anxiety is directly influencing interest rate projections. Data from CME Group’s FedWatch Tool reveals that the likelihood of a 0.25% Federal Reserve rate increase at July’s policy meeting skyrocketed from roughly 12% to nearly 40% over a single week.
Market analysis platform The Kobeissi Letter observed that US 10-year Treasury yields reached 18-month peaks, characterizing it as “a sign of fresh economic strain.”
American equity markets also suffered losses. The S&P 500 declined 1.2% while the Nasdaq shed 2.2% by Thursday’s closing bell in New York.
Market Analysts Offer Conflicting Outlooks
Market analyst Michaël van de Poppe identified the 21-day moving average positioned at $64,073 as the critical support threshold. He suggested that if Bitcoin maintains levels above this floor, a rally toward $73,000 becomes viable, though the $68,000 resistance area presents a significant obstacle.
Crypto trader Jelle maintained that price action is “still making progress” and a successful breach of immediate resistance levels could pave the way toward $70,000.
Analyst Exitpump adopted a more conservative stance, advising followers: “July rally is coming to end. Close your longs, go short once price breaks below 65K.”
Analyst KillaXBT outlined his market perspective, stating his belief that the cycle bottom has already formed at $57K. He anticipates BTC will undergo consolidation over the coming one to one-and-a-half months before advancing toward the $80,000 territory.
https://twitter.com/KillaXBT/status/2080276912471961697?s=20
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