Crypto markets are taking a hit. Bitcoin fell to three-day lows near 64,799 dollars on Thursday, breaking below the 65,000 dollar mark while US stocks also slid. The move comes as strikes between the US and Iran enter their 13th day, creating a risk-off environment that has dragged down digital assets alongside equities.
The driver is a sudden shift in macro conditions. Oil prices have surged past 100 dollars a barrel, with Brent crude topping 101 dollars, while US bond yields hit 18-month highs. These moves signal fresh inflation fears and have pushed expectations for a July Federal Reserve rate hike toward 40 percent, up from just 12 percent a week ago. The market is pricing in tighter money sooner than anticipated.
Higher rates are the immediate headwind for Bitcoin. When bond yields rise, non-yielding assets like crypto become less attractive by comparison. The war premium that usually supports safe havens has failed to act as a shield for digital currencies this time around. Instead of fleeing to Bitcoin, capital is flowing into traditional hedges like oil and bonds, leaving the crypto market exposed to the broader sell-off. Sentiment has shifted fast.
Traders are now split on whether this is a temporary dip or the end of the July rally. Bears see resistance at 68,000 dollars and argue that breaking below 65,000 opens the door for further losses. Bulls point to support near the recent lows as a line in the sand. The next move will likely depend on whether buyers can defend that level or if sellers push through it.
As MCO noted on July 24, 2026, Bitcoin has held up relatively well despite today's sharp sell-off across parts of the equity market. That analysis highlighted a specific support zone as the first key line to watch for now, suggesting the asset is testing its resilience rather than collapsing fundamentally. This distinction matters because it separates a sentiment-driven correction from a structural breakdown in the face of rising rates and war. The test is real.
The current drop reflects a shift in sentiment driven by inflation fears and potential Fed tightening rather than a failure of the asset class itself. Whether Bitcoin can hold above 64,073 dollars decides if the July rally continues or if a deeper correction begins. Clarity remains elusive for now.