Bitcoin came under fresh pressure on Thursday as a combination of rising oil prices, climbing Treasury yields, and renewed regulatory uncertainty weighed on crypto markets. Asian stocks, meanwhile, found support from an AI spending boost.
Bitcoin slipped to around $65,500 early Thursday, down about 0.7% since midnight UTC. The drop extended a pullback from a high near $66,700 reached the day before. Ether, Solana, and XRP also traded lower.
Oil was a key driver of the selloff. West Texas Intermediate futures climbed to $88.60 per barrel, the highest level since June 11. That marked a steep rebound from recent lows below $70 and raised fresh inflation concerns.
Bond markets responded quickly. The U.S. two-year Treasury yield jumped to 4.31%, its highest since February 2025. The 10-year yield rose to 4.66%, the highest since May. Higher yields make non-yielding assets like Bitcoin less attractive to investors.
Adding to market unease, the U.S. military deployed a B-1 long-range bomber to strike targets linked to Iran’s Islamic Revolutionary Guard Corps. The move signaled a possible escalation beyond the limited strikes seen in recent days.
Regulatory hopes took a hit on Thursday. A group of key Senate Democrats said the newest draft of the Digital Asset Market Clarity Act “falls short” on ethics and other critical provisions.
CLARITY ACT ODDS FALL TO 37% ON POLYMARKET
Senate Republicans released updated text that would bar presidents and other federal officials from issuing or sponsoring digital assets.
The DOJ could fine violators up to $250,000 per day.
Majority Leader John Thune says a vote… pic.twitter.com/OIEIWuvobe
— Wall St Engine (@wallstengine) July 22, 2026
Betting markets on Polymarket reacted fast. The implied odds of the Clarity Act passing fell from 46% to 38%.
Senate Republicans had released an updated draft earlier in the week. The draft includes an ethics provision agreed to by the White House. Senator Bernie Moreno called it “the most powerful ethics language in U.S. history,” but that did not satisfy Democratic senators.
Asian markets largely moved higher on Thursday. The gains were driven by Alphabet raising its annual capital spending forecast by an additional $15 billion, a sign that AI investment remains strong.
South Korea’s KOSPI led regional gains, rising 4.4%. SK Hynix and Samsung Electronics both surged on expectations that higher AI-related spending would boost demand for memory chips and AI servers.
South Korea’s economy also grew 3.7% year-on-year in the second quarter of 2026, beating forecasts of 3.5%. Strong semiconductor exports were a major factor.
Japan’s Nikkei 225 rose 0.4%. Hong Kong’s Hang Seng gained 1.1%. China’s Shanghai Composite edged up 0.2%.
Oil gains capped the broader rally. Houthi attacks on two Saudi oil tankers in the Red Sea pushed crude prices to six-week highs for a fifth straight session, keeping inflation fears alive.
Australia added 76,300 jobs in June, well above the forecast of 16,400. That raised the chances of a rate hike from the Reserve Bank of Australia before year-end.
Alphabet shares fell in after-hours trading despite a strong earnings beat, as investors sold the news.
The post Daily Market Update: Bitcoin Drops, Oil Surges and Crypto’s Big Regulation Bill Is in Trouble appeared first on CoinCentral.
