US Clarity Act Passage Odds Sink to 38%; Bitcoin Falls as Oil, Treasury Yields Rise

Bitcoin came under pressure as oil prices and Treasury yields climbed and uncertainty over US crypto regulation deepened.

CoinDesk reported on July 23 that Bitcoin traded near $65,500, down about 0.7% from the previous day's high of $66,700. Major altcoins including Ether, Solana and XRP also declined.

Rising oil prices and Treasury yields weighed on investor sentiment. West Texas Intermediate crude futures on the New York Mercantile Exchange climbed to $88.60 a barrel, the highest since June 11. TradingView data showed the US two-year Treasury yield rose to 4.31%, its highest since February 2025, while the 10-year yield climbed to 4.66%, the highest since May. Higher yields raise the opportunity cost of holding non-interest-bearing assets such as Bitcoin and gold, prompting investors to shift toward fixed-income assets including bonds.

Geopolitical tensions also escalated. Axios reported that the US deployed B-1 long-range bombers to strike targets linked to Iran's Islamic Revolutionary Guard Corps. The use of heavy bombers signaled an expansion beyond recent limited airstrikes.

Regulatory uncertainty increased as well. Senate Republicans released a revised version of the Digital Asset Market Clarity Act on July 22, but many Democratic senators opposed it, saying the measure fell short on key issues including ethics provisions. On decentralized prediction platform Polymarket, the odds of the Clarity Act passing fell sharply to 38% from 46%.

Republicans said the revised bill includes ethics provisions agreed with the White House and President Donald Trump. Senator Bernie Moreno called them the strongest ethics provisions in US history.