Bitcoin Plunges Below $64,000 as Oil Prices Soar
Bitcoin's price plummeted to $63,852 on August 11, breaching the $64,000 threshold as rising oil prices and uncertainty ahead of the US inflation report weakened risk appetite. The decline was fueled by the deterioration in US-Iran negotiations over reopening the Strait of Hormuz, causing Brent crude to surge above $89 a barrel.
The increased oil prices complicated the Federal Reserve's inflation outlook, raising concerns about transportation and production costs. This pressure reduced demand for risk assets as US traders prepared for the July Consumer Price Index report.
Broader crypto markets also suffered during this period, with Ether and XRP falling over 2%. Bitcoin failed to hold above $65,000, a level that buyers had attempted to establish as support in the previous four days. Institutional demand offered limited support, as US spot Bitcoin exchange-traded funds recorded net outflows of $144.6 million on August 10.
The daily chart shows that Bitcoin's price remains locked within a broad range formed after the June decline. The asset is currently trading above its 20-day simple moving average at $64,219 and its 50-day SMA at $63,392. However, it continues to trade below the 100-day SMA at $67,628 and the 200-day SMA at $69,918.
The relative strength index stands at 50.31, almost level with its signal line at 50.10. This indicates that neither buyers nor sellers have decisive momentum, supporting the view that Bitcoin remains in consolidation rather than entering a confirmed directional trend.