Bitcoin Slips Under Pressure as Rising Oil, Rates Shake Markets; Clarity Act Odds Drop

Bitcoin remained under pressure Thursday as rising geopolitical tensions, higher interest rates, and renewed uncertainty around crypto regulation weighed on market sentiment. The decline came as oil prices and Treasury yields moved higher while expectations for the Clarity Act’s passage weakened.

The leading cryptocurrency was trading near $65,500, down roughly 0.7% since the start of the UTC trading day, extending a pullback from Wednesday’s peak of around $66,700. Selling pressure spread across the broader crypto market, with major assets including Ethereum, Solana, and XRP also moving lower.

Oil markets added to the risk-off environment, with West Texas Intermediate crude futures on the NYMEX climbing to $88.60 per barrel, the highest level since June 11. The move marks a strong recovery from recent lows below $70 and raises concerns that renewed energy inflation could push consumer prices higher in the U.S. and other major economies.

A sustained rise in inflation could make it more difficult for central banks to begin cutting interest rates, adding further pressure to risk assets.

Bond markets reflected the shift in expectations. The U.S. two-year Treasury yield climbed to 4.31%, reaching its highest level since February 2025, while the 10-year yield increased to 4.66%, its highest point since May, according to TradingView data.

Higher bond yields typically reduce demand for assets such as Bitcoin and gold because investors can earn more attractive returns from fixed-income instruments. As borrowing costs rise, traders often reduce exposure to speculative assets and move toward safer yield-generating investments.

Geopolitical concerns also contributed to market weakness after Axios reported that the U.S. military deployed a B-1 long-range bomber on Tuesday for strikes against targets associated with Iran’s Islamic Revolutionary Guard Corps. The deployment marked a significant escalation and raised concerns that U.S. involvement in the conflict could expand beyond limited operations.

Regulatory uncertainty added another layer of pressure after several Senate Democrats criticized the latest version of the Digital Asset Market Clarity Act, saying the proposal still lacks sufficient ethics protections and other important safeguards.

Prediction markets reacted negatively to the political pushback. On Polymarket, traders lowered the implied probability of the Clarity Act becoming law from 46% to 38%.

The revised bill was introduced by Senate Republicans on Wednesday and includes an ethics provision that received approval from the White House and President Donald Trump. Senator Bernie Moreno described the measure as among the strongest ethics provisions ever proposed in U.S. legislation.