Yeliz Akmaca 
The crypto market is holding its breath at $100,000 dreams, while news from traditional markets dampens bullish appetite. First gold and then silver, which surpassed $120 to hit a new record, drew liquidity away from crypto. Now, the sharp rise in oil prices compounds the effect. WTI and Brent crude have both gained 12% this month, signaling an inflation and interest rate spiral for Bitcoin investors.
Rising oil prices do more than increase energy costs—they push investors toward safe-haven assets like gold and silver. Declining U.S. and global oil inventories force refineries to draw more from reserves, while geopolitical risks keep prices elevated. Tensions related to Iran and Venezuela, for example, increase uncertainty in the energy market, driving prices even higher.
Inflation and the Fed’s Role
Rising oil and precious metals prices directly affect the cost of everyday goods and services. Higher fuel, food, and transportation costs push workers to demand bigger paychecks, which in turn prompts companies to raise prices further, creating a self-reinforcing inflation loop.
The Fed notes that energy price effects on inflation are significant, both directly and indirectly. Higher energy costs raise future inflation expectations for consumers and businesses, pushing overall prices higher. In 2022, similar conditions combined with rapid Fed rate hikes caused Bitcoin to lose 64% of its value. Today, rising oil prices strengthen the Fed’s cautious stance and make quick rate cuts less likely.
Bitcoin and Crypto Impact
Bitcoin, which reached $126,000 in October, is now below $90,000. Rising gold, silver, and oil prices are pulling investor interest away from crypto. Higher costs and the Fed’s cautious policies pressure short-term bullish expectations.
Silver’s record-breaking surge over $120 also limits capital flow into crypto. Investors are still seeking safe-haven assets, and macroeconomic pressures continue to slow Bitcoin’s upward momentum. In short, the crypto market remains sensitive to swings in traditional markets.
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