Bitcoin dropped 3.5% on Wednesday, sliding back toward the $60,000 support level. A few things are driving the sell-off.
Oil prices are climbing after the US-Iran deal fell apart. Brent crude jumped from $68 to $74, feeding inflation fears. That makes the Fed less likely to cut rates — traders now see 69% odds of a rate hike by September, up from 42% a month ago. Risk assets like Bitcoin tend to struggle in that environment.
Japan’s bond markets aren’t helping either. Yields there hit a 30-year high, and there’s growing worry about contagion since Japan holds more US Treasuries than any other country.
Then there’s Strategy. The company sold another $216 million in Bitcoin this week, and these sales happened outside their core monetization program. Investors weren’t expecting that. Strategy’s got $1.76 billion in annual dividends and over $3.8 billion in convertible debt — the earliest call date is April 2027. The market’s pricing in more selling pressure.
On the regulatory side, India’s central bank is pushing hard for policies that would effectively ban crypto activities, including barring banks from any exposure to virtual assets.
Bitcoin tried to reclaim $64,500 on Monday but couldn’t hold it. The tech-heavy Nasdaq recovered some ground Wednesday, but Bitcoin stayed weak. That divergence suggests something specific is weighing on crypto beyond broad market sentiment.
Bears are in control for now. The $60,000 level is looking increasingly likely to get tested again.
