Bitcoin Falls Below $65K as Oil Tops $100 After Red Sea Attacks

Bitcoin fell below $65,000 on July 23 after attacks on two Saudi oil tankers in the Red Sea drove Brent crude above $100 a barrel. The largest cryptocurrency traded near $64,980 as Brent settled 7% higher at $100.69 before easing to about $96.70 in European trading.

The tanker attacks prompted President Donald Trump to warn Iran and the Houthi group of “major military punishment.” Trump added that future damages to ships and cargo could be covered with Iranian funds controlled by the United States. U.S. forces carried out a thirteenth consecutive night of strikes related to the wider confrontation.

The rise in oil prices affected broader markets. The U.S. 10-year Treasury yield climbed to roughly 4.7%, its highest level since January 2025. Equity markets moved lower, with the S&P 500 down about 1.2% and the Nasdaq Composite falling around 2.2% on July 23. Futures markets put the probability of a quarter-point Federal Reserve rate increase at the July 28-29 meeting near 40%.

André Dragosch, head of research for Europe at Bitwise, warned that a sustained increase in oil could push the 10-year Treasury yield above 5% and said higher energy bills for major importers could prompt additional government bond sales. Jurrien Timmer, director of global macro at Fidelity Investments, pointed out that rising term premiums, combined with a positive correlation between bonds and equities, could weigh on both markets simultaneously.

Crypto-specific demand also softened. U.S.-listed spot Bitcoin exchange-traded funds posted $225.2 million in net outflows on July 23, ending a seven-session inflow streak that had gathered nearly $1 billion. The funds remained about $274 million net positive for the week through Thursday. On-chain indicators show weaker spot demand while futures demand remains positive but at a slower pace than during Bitcoin’s rebound three months earlier, according to Ki Young Ju, founder of CryptoQuant.

Market participants noted that a larger share of futures-driven exposure makes prices more sensitive to rising yields or falling equities, which can lead to forced liquidations and amplify downward moves around the $65,000 level.

Analysts said the attacks could extend pressure on oil markets by increasing risk around Bab el-Mandeb, the passage linking the Red Sea to the Gulf of Aden. Estimates from analysts at a major bank suggest each additional month of constrained supply could add $7 to $8 a barrel to Brent, and a three-month disruption could push the benchmark’s monthly average toward $114. Analysts added that a restoration of shipping flows would ease some pressure on yields and risk assets, while continued attacks would keep energy costs and inflation expectations higher, supporting upward pressure on Treasury yields.