Bitcoin dipped to around $65,500 as the asset faced pressure from rising oil prices, higher Treasury yields, and a regulatory setback. The drop came after the cryptocurrency pulled back from a high near $66,700 the previous day. Sellers pushed prices down in the early hours of the morning, contributing to a broad decline in riskier crypto assets.
Oil prices surged to $88.60 per barrel, the highest since June 11. The climb in prices raises concerns about a return of inflation, which could disrupt central banks' plans to cut interest rates. As yields rise, investors are moving capital into fixed-income products, leaving non-yielding assets like Bitcoin behind.
Yields rise, shifting capital
The U.S. two-year Treasury yield reached 4.31%, its highest level since February 2025. Meanwhile, the 10-year yield climbed to 4.66%, a peak not seen since May. These increases raise the cost of holding assets that do not generate income, such as Bitcoin.
Ether, Solana, and XRP all followed Bitcoin lower, reflecting weakness across the market. Futures tied to West Texas Intermediate crude oil climbed to $88.60, extending a strong rebound from recent lows below $70 per barrel.
Military moves and regulatory setbacks
The U.S. The move signals a possible escalation in military operations. On the regulatory front, Polymarket data showed that the implied odds of the Digital Asset Market Clarity Act passing dropped from 46% to 38%. While Senator Bernie Moreno praised the ethics provisions in the bill, calling it 'the most powerful in U.S. history,' market sentiment remained cautious.
Binance remains strong amid outflows
Binance continued to hold a strong position in early July, maintaining approximately 55% of user funds and 24% of spot trading volume. While other exchanges faced outflows, Binance attracted net inflows. This resilience comes as investors adjust their portfolios amid pressure on major tokens and rising geopolitical and regulatory uncertainties.
The broader market has been repositioning since June, but Binance's dominance remains intact. As the situation evolves, the exchange has shown its ability to attract capital even when the crypto space faces headwinds from oil, rates, and regulation.
The ongoing geopolitical tensions, particularly around Iran, and the mixed reaction to the latest version of the Clarity Act are further weighing on investor sentiment. Despite Binance's continued strength, the overall environment for cryptocurrencies remains challenging as central banks, global inflation expectations, and regulatory scrutiny all play a role.