Bitcoin's price slid nearly 2.6% to hover around $65,050 on July 24, retreating from its recent peak of $66,800 recorded three days earlier. This pullback comes amid $225 million in net outflows from U.S. spot Bitcoin ETFs, with BlackRock’s IBIT alone accounting for $202 million of these withdrawals, reversing the inflows that had supported Bitcoin’s recovery since it hit lows near $58,000 in late June.

Options Expiry and Market Factors Weigh on BTC

A looming $1.2 billion options expiry set the maximum pain price near $64,500, adding pressure on Bitcoin to hold above key support levels. On the technical side, Bitcoin remains above a rising trendline that connects higher lows since late June, currently positioned between $63,700 and $64,300. However, the Relative Strength Index on the four-hour chart has dropped below its signal line, signaling weakened momentum following the failure to sustain levels above $66,000.

Meanwhile, broader market conditions contributed to Bitcoin’s struggle. The U.S. technology sector endured its sharpest sell-off since April 2025, with the so-called Magnificent Seven stocks plunging 4.8% and wiping out about $797 billion in market cap. The Nasdaq 100 and S&P 500 also fell 1.9% and 1.2%, respectively, as investors reassessed the pace of corporate AI investments. Despite this, Bitcoin showed relative resilience, declining less than 1% during the equities downturn.

Rising Oil Prices Add to Inflation Concerns

Energy markets are another headwind for Bitcoin. West Texas Intermediate crude eased to $90.59 but still looks set for a near 10% weekly gain, while Brent crude steadied just below $99 after briefly surpassing $100. Increased geopolitical tensions, including the U.S. conducting its 13th consecutive night of strikes on Iran and threats of military actions following attacks on Saudi oil tankers, have kept crude prices elevated.

Higher energy costs could sustain inflationary pressures, limiting the Federal Reserve’s ability to cut interest rates in the coming months. This scenario tends to favor income-generating assets, making Bitcoin less attractive since it yields no interest. Treasury yields rising due to such inflation concerns further challenge Bitcoin’s appeal among investors.

Material is for informational purposes only and does not constitute financial advice.