Bitcoin Falls Below $63,000 as Middle East Tensions and AI Stock Selloff Hit Crypto

Bitcoin is often billed as “digital gold,” but geopolitical shocks can still make it trade like a risk asset. An attack on Saudi Arabia by Yemen’s Iran-linked Houthis renewed concern over Middle East energy supplies. Sustained gains in crude could intensify inflation, keep U.S. interest rates higher for longer and tighten financial conditions, a backdrop that may weigh on cryptocurrencies even as traditional havens such as gold attract demand.

On Aug. 7, 2026, bitcoin traded near $64,700, little changed over 24 hours and below the $65,000 threshold, while the broader CoinDesk 20 Index slipped 0.2%. Brent crude climbed above $83 a barrel after the attack, and gold rose 1.5% to $4,300 an ounce as investors sought safety. The U.S. 10-year Treasury yield held at 4.67%, underscoring the pressure elevated borrowing costs continue to exert on risk assets.

Bitcoin has retreated steadily since reaching a high of more than $125,000 in October 2025, while ETF and corporate buying in the crypto market has also weakened. Greg Cipolaro, NYDIG’s global head of research, said AI has become the more favored growth theme and is competing with crypto assets for capital. Technology IPOs, concerns about quantum computing and Strategy’s bitcoin sales have also weighed on demand.

Bitcoin fell below $60,000 on June 5, reaching its lowest level since late 2024. NYDIG said on June 7 that there was no single cause for the decline. The cryptocurrency was quoted at about $59,940 on June 28, down 0.6% over 24 hours and nearly 7% for the week. It could extend its decline into the second quarter, which would mark its first back-to-back quarterly losses since 2022.