Bitcoin rebounded to around $65,700 but struggled to extend gains as international oil prices and U.S. Treasury yields rose. Markets are watching next week’s U.S. congressional debate on the CLARITY bill and the Federal Open Market Committee meeting as key drivers of near-term direction. Expectations over the bill’s ethics provisions initially lifted prices, but momentum faded amid worsening U.S.-Iran tensions and profit-taking. The Fed’s signals on potential further rate hikes are also in focus.

Markets are factoring in the possibility that Federal Reserve Chair Kevin Warsh could raise the policy rate at this week’s meeting. Oil prices have climbed above $100 a barrel as fighting between Iran and the United States resumes, reviving concerns about energy-driven inflation. Rate-hike odds priced in by futures markets have risen sharply, while bond selling has pushed long-term yields higher in the United States and Europe. Strong U.S. jobs data and inflation still above the Fed’s target are also weighing on expectations.