Rising Oil and Bond Yields Drag Bitcoin Lower as Crypto Bill Faces Setback

Bitcoin fell early Thursday as rising oil prices, higher bond yields and fresh doubts over crypto legislation weighed on the market, pulling the token down from its midweek high.

Bitcoin traded near $65,700, down about 0.6% since midnight UTC, retreating further from Wednesday’s peak close to $66,800. Ether, Solana also slipped as selling spread across major tokens.

Oil and Bond Yields Add Pressure

Oil futures climbed to $88.60 a barrel, the highest since June 11, raising concerns about inflation and complicating the path for interest rate cuts.

Meanwhile, the two year Treasury yield rose to 4.31%, its highest since February 2025, and the 10-year yield reached 4.66%. Higher yields typically pull investors away from non-yielding assets like bitcoin toward fixed-income returns.

Iran Tensions and Clarity Act Doubts Weigh on Sentiment

Reports that the US military deployed a B-1 bomber against Iran-linked targets added to market caution. Separately, betting odds for the Clarity Act’s passage on Polymarket dropped from 46% to 38% after key Senate Democrats said the bill’s latest draft falls short on ethics protections.