Bitcoin Faces Pressure as WTI Surges to $88.60, U.S. Treasury Yields Rise

According to CoinDesk, WTI crude oil hit $88.60 per barrel on July 22, marking the highest level since June 11, as geopolitical tensions between the U.S. and Iran intensify. The rally has revived concerns about inflation resurgence, potentially limiting the Federal Reserve's room for interest rate cuts.

U.S. Treasury yields climbed sharply: the 2-year yield reached 4.31%, the highest since February 2025, while the 10-year yield rose to 4.66%, its highest level since May. Bitcoin, which carries no yield itself, faces increased opportunity costs as investors shift toward higher-yielding bonds. Bitcoin traded at $65,408 on July 23, according to CoinGecko. Additionally, the approval probability of the CLARITY Act, a proposed crypto regulation framework, dropped from 46% to 38%, according to prediction market Polymarket, adding regulatory uncertainty to the market.