Key Highlights
- Bitcoin declined to approximately $65,500, representing a 0.7% decrease amid rising energy costs and bond yields.
- West Texas Intermediate crude surged to $88.60 per barrel, marking the highest point since June 11.
- Polymarket prediction markets show the Digital Asset Market Clarity Act’s passage probability declining from 46% to 38% following Democratic pushback.
- U.S. bond yields advanced significantly, with the 2-year reaching 4.31% and the 10-year touching 4.66%.
- Spot Bitcoin ETFs recorded consistent inflows for seven consecutive sessions, accumulating $981.2 million since mid-July.
Bitcoin traded near $65,500 during early Thursday sessions, marking a 0.7% decrease from the previous midnight UTC benchmark. The digital asset retreated from Wednesday’s peak of approximately $66,700.
The broader cryptocurrency market mirrored bitcoin’s downward movement. Ethereum, Solana, and XRP each posted declines in tandem with the leading digital currency.
Energy market dynamics significantly influenced crypto trading. West Texas Intermediate crude oil futures advanced to $88.60 per barrel, establishing the highest valuation recorded since mid-June.
Elevated oil prices typically contribute to inflationary pressure throughout the economy. This dynamic complicates the Federal Reserve’s ability to implement interest rate reductions.
Bond Yields Surge to Notable Levels
Fixed-income markets experienced similar inflationary concerns. The two-year U.S. Treasury yield climbed to 4.31%, representing the highest reading since February 2025.
The benchmark 10-year Treasury yield increased to 4.66%, the strongest level observed since May. Rising yields enhance the relative appeal of interest-bearing securities compared to non-yielding assets such as bitcoin. This shift frequently prompts capital rotation from cryptocurrency holdings into traditional fixed-income instruments.
International security developments contributed to market uncertainty. According to Axios reporting, U.S. military forces deployed a B-1 strategic bomber on Tuesday for strikes against facilities associated with Iran’s Islamic Revolutionary Guard Corps. The operation represented an escalation in scope relative to prior military actions.
Legislative Outlook Weakens on Prediction Markets
Legislative developments also impacted market sentiment. A coalition of Senate Democrats issued criticism regarding the latest version of the Digital Asset Market Clarity Act, citing inadequate provisions related to ethics and oversight.
Decentralized prediction platforms immediately reflected this skepticism. The likelihood of passage on Polymarket declined from 46% to 38%.
Senate Republican leadership unveiled the revised legislative draft on Wednesday. The updated version incorporated an ethics framework endorsed by both the White House and President Trump. Senator Bernie Moreno characterized it as “the most powerful ethics language in U.S. history.”
While prices declined, institutional investment patterns told a contrasting story. Blockchain analytics provider Santiment documented that Bitcoin exchange-traded funds maintained positive inflows for seven consecutive trading sessions beginning July 14.
Santiment’s data revealed $981.2 million in aggregate net inflows throughout this period. These inflows coincided with bitcoin’s advance toward the $66,300 level.
The analytics firm noted that the previous comparable inflow streak occurred in early October 2025. During that timeframe, bitcoin was approaching its record high of $126,000.
Santiment emphasized that historical patterns don’t guarantee future outcomes. However, the firm suggested sustained inflows may indicate recovering investor confidence following the substantial outflows witnessed during May and June.
The research team also identified a potential warning signal. According to Santiment, current ETF activity patterns support a potential rally toward $70,000. Nevertheless, they cautioned that an exceptionally large single-day inflow spike could indicate overheated buying conditions, which historically precedes local price peaks.
Bitcoin continued trading around $65,500 in early Thursday activity, with energy commodity prices and government bond yields representing primary headwinds for the cryptocurrency market.
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