Bitcoin drops below $63,000 as oil, yields climb

Bitcoin fell below $63,000 on Thursday as rising oil prices and bond yields weighed on risk sentiment.

West Texas Intermediate crude futures climbed above $82 per barrel, adding to inflationary pressures that have contributed to a broader selloff in risk assets. The increase in energy prices comes as U.S. Treasury yields rose, reducing appetite for higher-beta assets including cryptocurrencies.

The decline in Bitcoin extended losses from the prior session, when the cryptocurrency retreated from recent highs amid a pullback in global equities. Market participants cited rising energy costs and higher borrowing rates as key headwinds, with some warning of potential further downside if crude prices remain elevated.

The Federal Reserve’s hawkish stance on interest rates has kept bond yields elevated, while geopolitical tensions in key oil-producing regions have supported energy prices. Analysts noted that the combination of higher oil and yields typically reduces liquidity in risk markets, a dynamic that has historically pressured digital assets.

Bitcoin last traded at $62,850, down 2.1% on the day, while WTI crude futures were up 1.8% at $82.30 per barrel. U.S. 10-year Treasury yields rose to 4.25%, contributing to the risk-off tone across markets.