Bitcoin fell below $64,000 on July 25, trading near $63,936, as a sharp reversal in spot ETF flows and a persistent drain in stablecoin reserves signaled weakening market liquidity. The decline erased gains from a mid-week rally that had briefly pushed the price above $67,000, leaving traders to reassess the durability of recent institutional support.
The immediate trigger was a $225.2 million net outflow from U.S. spot Bitcoin ETFs on July 24, ending a seven-day inflow streak that had accumulated nearly $1 billion. BlackRock’s IBIT accounted for roughly $202 million of those withdrawals, according to SoSoValue data. The reversal coincided with Bitcoin’s initial slide toward $65,000, and on-chain data later showed BlackRock moving approximately $203 million in BTC to Coinbase Prime, a pattern associated with ETF position liquidations.
Geopolitical tensions added another layer of pressure. Brent crude closed at $100.69 a barrel on July 23, its first close above $100 in two months, after Houthi forces attacked Saudi oil tankers in the Red Sea and the U.S. carried out a 13th consecutive night of strikes on Iran. President Trump threatened “major military punishment,” and the 10-year U.S. Treasury yield climbed to roughly 4.7%, its highest since January 2025. The S&P 500 fell 1.2% and the Nasdaq lost 2.2% on July 23, as higher energy costs and rate-hike expectations sapped risk appetite.