Bitcoin dips below $65,000 as oil prices rise

Bitcoin dropped below $65,000 on Tuesday, extending losses as rising oil prices dampened risk sentiment across financial markets.

The world’s largest cryptocurrency by market value fell 3% to $64,500, according to data from major exchanges. The decline followed a sharp increase in crude oil prices, which climbed to multi-month highs amid supply concerns tied to geopolitical tensions.

Analysts cited the correlation between oil and risk assets, noting that higher energy costs often pressure broader market sentiment. The S&P 500 and Nasdaq futures also slipped in early trading, reflecting the cautious tone in equities.

U.S. inflation data, due later this week, remains a key focus for traders. Expectations of a hotter-than-anticipated report could reinforce expectations for prolonged higher interest rates, further weighing on risk assets including Bitcoin. Geopolitical risks, particularly in the Middle East, have also contributed to market volatility.

Bitcoin’s recent pullback comes after a period of relative stability above $65,000, with the cryptocurrency trading near its highest levels since late 2021. The decline in Bitcoin’s price follows broader weakness in risk assets, including technology stocks and high-yield debt.