Bitcoin slipped toward $64,000 on Tuesday, down more than 1% on the day, after failing for a fourth consecutive session to hold above $65,000. The token touched a 24-hour high just above $65,300 before fading through Asian afternoon trading, part of a broader pullback that hit altcoins harder than bitcoin itself.
Ether led the declines among major tokens, falling over 2% to $1,878 despite being marginally higher over the past seven days. XRP was the week's worst performer, down almost 2% on the day and nearly 6% over seven days to $1.01. Solana held up better, easing under 1% to $76 while still leading the week with a 3% gain, and BNB slipped modestly to $600 while preserving a 2% weekly advance.
An Oil Rally Reignites Inflation Fears
The selloff traces back to crude oil. Brent crude held near $87.73 a barrel after jumping 5% on Monday, when President Donald Trump issued fresh demands that Iran pay war compensation — a move that rattled energy markets and revived concern that inflation could prove stickier than expected. That spike in oil prices has since rippled into rates markets, with the U.S. 10-year Treasury yield rising six basis points to 4.71% and adding pressure on risk assets broadly, crypto included.
Traders are now bracing for Wednesday's U.S. inflation report at 8:30 a.m. ET, which will help determine whether the oil-driven price scare feeds through into the broader data or proves transitory.
Related: BTC, ETH, XRP, ZEC Diverge as Traders Weigh Fed's Rate Hold
Short Positions, Not Profit-Taking
Alex Kuptsikevich, chief market analyst at FxPro, argued the resistance at $65,000 reflects positioning rather than holders cashing out. He pointed to "a build-up of short positions well above this level" as the more likely explanation for bitcoin's repeated failure to break higher, rather than long-term holders taking profit at that price.
Traders are watching $70,000 — near bitcoin's 200-day moving average — as the level that could flip momentum back toward buyers. More granular chart analysis has flagged a narrow resistance cluster around $69,172 to $69,312, meaning bitcoin may need to clear several smaller hurdles before a full break above $70,000 becomes realistic.
Sentiment Stuck in Fear, Flows Turn Negative
The crypto Fear & Greed Index has sat at 30, in "fear" territory, since mid-July, with occasional dips toward extreme fear. Fund flows are starting to reflect that caution: U.S. spot bitcoin ETFs pulled in $865 million across five sessions through August 7, but that trend reversed with a provisional $91 million outflow on Monday as the oil-driven volatility took hold.
