Bitcoin’s price fell almost 2%, dropping below $64,700. This erased about $20 billion from its total value and forced the closure of $42.3 million worth of bets that the price would rise.
Key Takeaways
- Bitcoin tumbled 2% under $64,700 on Thursday due to stalling U.S. Senate progress on the CLARITY Act.
- President Trump’s statements on Iran and Red Sea disruptions pushed Brent crude over $101 per barrel.
- Bitunix analyst Dean Chen identified energy shocks, Fed policy, and liquidity as key drivers for crypto next.
Morning Sell-Off Drives $42 Million in Long Liquidations
Bitcoin reversed course on Thursday, tumbling from just over $66,000 to well under $65,000 as momentum driven by the CLARITY Act began to fade. The retreat coincided with a surge in oil prices that saw the global benchmark Brent crude breach $100 per barrel for the first time in weeks.
Bitcoin’s price saw some back-and-forth movement at the start of the day, trading between $66,200 and $65,750 as traders reacted to news about the CLARITY Act. Later, the price briefly dropped below $65,750, falling to $65,368, but quickly recovered most of those losses.
Bitcoin’s price dropped sharply just before 7 a.m. Eastern Time, losing almost $1,000 in value over the next six hours. As of this writing, Bitcoin is trading just below $64,700, which represents a nearly 2% decrease for the day. This decline also lowered its total market value from a little over $1.32 trillion yesterday afternoon to $1.3 trillion.
The drop triggered $42.3 million in long position liquidations, a sharp increase from the $18 million observed 24 hours earlier. Short position liquidations reached $6.2 million, roughly half the amount wiped out on Wednesday.
Progress on the CLARITY Act slowed down due to increased disagreement between Republicans and Democrats in the Senate, but economic concerns quickly became more prominent. A sharp rise in crude oil prices – reaching levels not seen in months – caused stock markets to fall. Brent crude briefly exceeded $101 a barrel, and U.S. West Texas Intermediate (WTI) climbed above $92 a barrel, demonstrating the growing pressure.
Market intelligence linked the oil surge directly to rising geopolitical friction in the Middle East. Energy traders reacted sharply to statements from U.S. President Donald Trump signaling potential military escalations against Iranian targets. Compounding those fears, ongoing Houthi maritime attacks against commercial vessels in the Red Sea continued to disrupt vital shipping corridors, adding a heavy risk premium to global crude supplies.
A sharp increase in energy prices quickly impacted financial markets, raising concerns about ongoing inflation. Bitunix analyst Dean Chen believes that major economic factors are now in control. Specifically, the availability of money, fluctuating energy prices, and changing expectations about Federal Reserve policies will be the key drivers of how risky investments – including cryptocurrencies – perform in the coming weeks.
2026-07-23 21:28