Bitcoin slides as oil, Treasury yields rise and Clarity Act odds fall in U.S. crypto market

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Bitcoin slides as yields rise

Highlights

Bitcoin falls 0.7% to $65,500 as WTI crude climbs to $88.60 and U.S. Treasury yields hit multi-month highs, pressuring risk assets.
U.S. two-year Treasury yield rises to 4.31% and 10-year yield reaches 4.66%, reducing demand for non-yielding assets like bitcoin and gold.
Betting odds for passage of the Digital Asset Market Clarity Act drop to 38% due to Senate Democratic concerns, increasing U.S. regulatory uncertainty for crypto.

Macro pressures and market moves

As reported by CoinDesk, bitcoin remains under selling pressure as futures tied to West Texas Intermediate crude climb to $88.60 a barrel, their highest level since June 11, while U.S. Treasury yields move higher. The cryptocurrency trades near $65,500, down about 0.7% since midnight UTC and extending a retreat from levels near $66,700 reached on Wednesday.

The broader digital asset market also trades lower, with ether, solana and XRP losing ground. In bond markets, the U.S. two-year Treasury yield rises to 4.31%, its highest level since February 2025, while the 10-year yield reaches 4.66%, the highest since May, according to TradingView data.

Higher yields tend to reduce the appeal of non-yielding assets such as bitcoin and gold because investors can obtain stronger returns in fixed-income markets. At the same time, the rebound in oil raises the prospect of renewed inflation pressure in the U.S. and globally, potentially complicating central bank efforts to lower interest rates.

Geopolitics and regulation add pressure

Market caution also increases after Axios reports that the U.S. military deploys a B-1 long-range bomber on Tuesday to strike targets linked to Iran’s Islamic Revolutionary Guard Corps. The reported use of the aircraft points to an escalation in U.S. operations and adds another layer of uncertainty for risk assets.

Regulatory concerns deepen after key Senate Democrats say the latest draft of the Digital Asset Market Clarity Act falls short on ethics and other critical provisions. Betting odds on Polymarket for the bill’s passage drop to 38% from 46%, signaling lower market confidence that the legislation advances in its current form.

Senate Republicans release the updated draft earlier Wednesday, including an ethics provision described as having been agreed with the White House and President Donald Trump. The latest dispute suggests that even with revisions, the legislation still faces political resistance that could weigh on sentiment across the U.S. crypto sector.

Our earlier coverage of the latest Senate Republican draft of the Digital Asset Market Clarity Act explained why Democrats, led by Senator Elizabeth Warren, argue it leaves loopholes around conflicts of interest—especially regarding President Donald Trump’s ability to continue profiting from crypto ventures. We also noted that disputes over ethics language and enforcement design, including limiting action largely to the Justice Department and restricting other avenues of enforcement, were becoming a key flashpoint that could fuel Democratic resistance as the bill moves through Congress.

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