Bitcoin Slides Below $64,700 as Senate CLARITY Act Talks Stall and Oil Tops $101

Morning Sell-Off Drives $42 Million in Long Liquidations

Bitcoin reversed course on Thursday, tumbling from just over $66,000 to well under $65,000 as momentum driven by the CLARITY Act began to fade. The retreat coincided with a surge in oil prices that saw the global benchmark Brent crude breach $100 per barrel for the first time in weeks.

According to a daily chart, bitcoin initially fluctuated between $66,200 and $65,750 as markets processed reports that the U.S. Senate was closing in on an agreement on key text for the CLARITY Act. However, shortly before midnight, the cryptocurrency broke below the $65,750 support level, sliding to $65,368 before a relief rally nearly erased the losses.

Just before 7 a.m. EST, bitcoin collapsed again as a fresh sell-off wiped off nearly $1,000 over the following six hours. At the time of writing, bitcoin traded just below $64,700, reflecting a daily loss of nearly 2%. The decline dragged its market capitalization down from just over $1.32 trillion on Wednesday afternoon to $1.3 trillion.

The drop triggered $42.3 million in long position liquidations, a sharp increase from the $18 million observed 24 hours earlier. Short position liquidations reached $6.2 million, roughly half the amount wiped out on Wednesday.

As legislative momentum on the CLARITY Act stalled amid renewed partisan friction between Senate Republicans and Democrats, macro headwinds took center stage. Surging crude oil prices—rebounding to multi-month highs—swiftly dragged broader markets lower. Market data highlighted the pressure, with global benchmark Brent crude briefly piercing the $101-per-barrel threshold while U.S. West Texas Intermediate (WTI) leapt past $92 per barrel.

Market intelligence linked the oil surge directly to rising geopolitical friction in the Middle East. Energy traders reacted sharply to statements from U.S. President Donald Trump signaling potential military escalations against Iranian targets. Compounding those fears, ongoing Houthi maritime attacks against commercial vessels in the Red Sea continued to disrupt vital shipping corridors, adding a heavy risk premium to global crude supplies.

The sudden spike in energy costs immediately sent shockwaves through broader financial markets, rekindling fears of persistent, sticky inflation. According to Bitunix analyst Dean Chen, macro forces are firmly in the driver’s seat: liquidity conditions, energy volatility, and shifting Federal Reserve policy expectations represent the critical triad that will dictate risk-asset trajectory—including crypto—in the weeks ahead.