Bitcoin slips below $65K as Middle East conflict spikes oil prices

The cryptocurrency market’s sensitivity to geopolitical instability remains pronounced, with Bitcoin extending its recent losses following the president's remarks to Axios. While Trump stated he was considering an operation "bigger than ever before," officials at the White House noted that no final military orders have been issued. This uncertainty has left traders hesitant, as the asset struggles to maintain support levels near $65,000.

Energy markets are reacting with greater volatility. Attacks on the Encelia and Layla tankers by Houthi forces have disrupted transit through the Bab el-Mandeb Strait, forcing a shift in global shipping routes. With Gulf oil-loading activity dropping significantly from its 30-day average, Goldman Sachs analysts warned that Brent could climb toward $120 if disruptions persist. Binance Research suggests this confluence of macroeconomic pressure and inflation risks will likely constrain Bitcoin’s recovery efforts through the third quarter, keeping the asset well below its 2025 highs.