Oil Shock and Military Threats Send Bitcoin Below $65,000
The global economy is bracing for another shockwave after President Donald Trump threatened Iran and the Houthis with 'major military punishment' following attacks on two Saudi oil tankers in the Red Sea. The surge in crude prices has pushed Brent to over $100 a barrel, its first close above this level since May.
The 10-year US Treasury yield has climbed to 4.7%, its highest since January 2025, while the S&P 500 fell 1.2% and the Nasdaq Composite lost 2.2%. Higher energy costs risk keeping inflation elevated through transportation, manufacturing, and consumer prices, limiting the Federal Reserve's room to ease policy.
According to André Dragosch, head of research for Europe at Bitwise, a sustained rise in oil could push the 10-year Treasury yield above 5%. This would further tighten financial conditions for assets sensitive to liquidity, such as Bitcoin.