BTC Drops 3% as US Confidence Slides and Oil Prices Surge

US consumer confidence falls to 51.0 while oil prices rise due to Strait of Hormuz tensions, keeping BTC range-bound near $63k with declining volatility.

Woofun AI reports that QCP Group highlights a drop in the preliminary University of Michigan Consumer Confidence Index to 51.0 for August. Retail sales fell 0.6% month-on-month in July, the largest decline since May 2025, reducing expectations of a September Federal Reserve rate hike to roughly 30%. Simultaneously, failed Strait of Hormuz negotiations have elevated oil prices, with WTI at $82.4 and Brent near $88.7, intensifying inflationary pressures. BTC trades slightly above $63,000, down 3% weekly, while ETH hovers around $1,900. Implied 1-week BTC volatility sits at 26% against a 7-day realized volatility of 20%, indicating a trendless market environment ahead of key macro events including the FOMC minutes and Jackson Hole symposium.