For bitcoin, the timing was especially delicate. The cryptocurrency had been attempting to stabilise after a volatile stretch, trading near $64,187 with a 24-hour volume of $24.5 billion. It had already fallen about 2.85% over the previous 24 hours, dipping below $64,000 as a broad risk-off move swept through Asian markets. South Korea’s KOSPI plunged more than 8%, triggering a circuit breaker, while Japan’s Nikkei fell about 4%. The equity rout, driven by a sell-off in semiconductor shares and concerns over AI spending, spilled into crypto, dragging bitcoin to an intraday low around $63,055 before a modest recovery.
The oil spike adds a fresh layer of macro uncertainty. Higher energy costs can feed inflation expectations, complicating the outlook for central bank policy just as the Federal Reserve prepares its next rate decision. Markets are already pricing a roughly one-in-three chance of a surprise hike, and pre-FOMC de-risking has been evident in both traditional and digital assets. US spot bitcoin ETFs saw $465 million in outflows on July 23–24, snapping a seven-day inflow streak, while the Senate shelved the Crypto Clarity Act to prioritise other legislation, removing a potential catalyst.