Bitcoin climbed 4.4% to reach $65,000 amid a retreat in US stocks and subdued market volatility. The cryptocurrency’s gain contrasts with a 2.9% drop in the Nasdaq Composite and a 1.6% decline in the S&P 500, highlighting a rare moment of crypto resilience in a turbulent week.

According to data from DWF Labs, the total digital asset market capitalization grew by 1.7% to $2.31 trillion. The boost in Bitcoin’s price came after US inflation figures for June came in below expectations, fueling optimism among crypto investors. Ether followed suit, rising from $1,774 to around $1,900 during the same period.

However, Bitcoin’s price faced a brief setback as geopolitical tensions between the US and Iran escalated, pulling it down to near $62,000 before recovering. The White House’s approval of an ethics deal tied to the CLARITY Act added to the positive sentiment by removing regulatory hurdles that had stalled progress on crypto market legislation in the Senate.

Signs of Unease in Energy Markets

While equities weakened, oil prices told a different story. Brent crude surged to $90.70 per barrel due to disruptions near the Strait of Hormuz, although it later dropped into the mid-$80s. Though prices remain well below the $114 peak from May, they are significantly higher than early July levels around $71. High funding rates and elevated volatility in oil futures suggest that traders remain cautious about the ongoing conflict’s impact on energy supplies.

Meanwhile, traditional markets reacted to inflation pressures with the 10-year US Treasury yield nearing 4.60% and the dollar index approaching 101. Markets currently price in roughly a 75% chance that the Federal Reserve will hold interest rates steady at its upcoming meeting on July 29.

Bitcoin’s volatility stayed near one-year lows even as broader financial markets grew more turbulent. Deribit’s volatility index for Bitcoin remains subdued, indicating calm among crypto traders despite rising macroeconomic risks. This quiet period could be temporary, as low volatility often precedes large price swings if global conditions shift suddenly.

Open interest in Bitcoin futures is rising but has yet to reach levels indicating overheating. This cautious use buildup reflects a market that is attentive but not overextended. As volatility remains low, traders are watching closely for signs of a potential breakout triggered by evolving macro factors.