Bitcoin wilts as oil and rates rise. Clarity Act odds tumble to 38%
Bitcoin and broader cryptocurrency markets retreated as rising oil prices and Treasury yields fueled inflation concerns, dampening investor appetite for speculative assets. Simultaneously, political momentum for the Digital Asset Market Clarity Act stalled after key Senate Democrats criticized the latest draft, causing betting market odds for its passage to drop to 38%.
Why it matters
The convergence of macroeconomic headwinds and legislative uncertainty highlights the vulnerability of crypto assets to traditional financial indicators and shifting political landscapes in Washington.
The cryptocurrency changed hands near $65,500, down about 0.7% since midnight UTC, extending the pulled back from a high near $66,700 reached Wednesday. The weakness spilled over into the broader market, with major tokens including ether (ETH), solana (SOL), and XRP (XRP) also trading lower.
Futures tied to West Texas Intermediate on the NYMEX climbed to $88.60 per barrel, marking the highest level since June 11. The move extends a steep rebound from recent lows below $70 and signals a potential new inflationary impulse that could push up consumer price indexes in the U.S. and globally. That, in turn, would complicate efforts by central banks to cut interest rates.
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