Bitcoin immediately dropped below $65,000 on July 23, 2026, touching a low of $64,799 on the Bitstamp exchange. The 1.5% daily decline was driven by escalating geopolitical tensions that sparked a selloff across risk-on asset markets.
Speaking to Axios, US President Donald Trump made remarks that shifted market sentiment: “I am considering a major strike. Bigger than before. I am close to making a decision. We are ready for it.”
The statement quickly spread and was met with a swift response from commodity markets.
Crisis in the Red Sea
Around the same time, the Houthi group launched direct attacks on global energy routes. Two Saudi Arabian oil tankers, Encelia and Layla, were attacked in the Red Sea using ballistic missiles, cruise missiles, and drones. The Bab el-Mandeb Strait has now become a critical flashpoint of armed conflict, forcing thousands of ships to reroute to avoid the danger zone.
Oil supply data reflected the disruption. UBS analysts reported that oil loading activity in the Gulf region dropped to 2.5 million barrels per day, far below the 30-day average of 6 million barrels per day. Brent crude surged 5% to break above $100 per barrel, marking its highest level since early June. The threat of scarcity was further underscored by a warning from Goldman Sachs, which estimated Brent could exceed $120 in the fourth quarter if disruptions in the Strait of Hormuz continue.
Ripple Effect on Interest Rates
Rising oil prices triggered a chain reaction across US financial markets by stoking inflation fears. The S&P 500 fell 1.2% and the Nasdaq dropped 2.2% on the same day. The bond market reacted in tandem, with US 10-year Treasury yields reaching an 18-month high.
Energy inflation fears led markets to re-evaluate monetary policy expectations. The probability of a rate hike by the US Federal Reserve in July rose to around 40%, jumping from a 12% probability the previous week. For Bitcoin, the combination of high interest rates and expensive energy costs presents a major headwind that drains market liquidity.
Buyers’ Line of Defense
This price correction extends the market’s ongoing weakness. Binance Research analysts noted that Bitcoin closed the first half of 2026 at $59,500, roughly 53% below its all-time high of over $120,000 set in October 2025. The situation has pushed market participants into a defensive stance. Pseudonymous trader Exitpump warned that the July rally would soon come to an end with prices stalling at resistance, advising traders to close long positions.
For analyst Michaël van de Poppe, one technical fortress is now in the spotlight. The 21-week Simple Moving Average at $64,073 serves as a key line of defense for prices. If buyers can break through immediate resistance, a target of $73,000 could open up. For now, however, technical charts are entirely driven by military decisions and shipping traffic in the Middle East.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
