Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
First gold and silver, now oil is starting t
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
First gold and silver, now oil is starting t
First gold and silver, now oil is starting to rally and that's bad news for bitcoin
First gold and silver, now oil is starting to rally and that's bad news for bitcoin
Higher oil prices could add to inflation, making it harder for the Fed to cut rates rapidly.
By Omkar Godbole|Edited by Sam Reynolds
Updated Jan 29, 2026, 10:12 a.m. Published Jan 29, 2026, 5:22 a.m.
Make us preferred on Google
Oil rally poses risk to bitcoin's price.
What to know:
- WTI and Brent oil prices have surged by 12% this month.
- Higher oil prices could add to inflation, making it harder for the Fed to cut rates rapidly.
- BTC bulls are hopeful that rate cuts would arrive soon, lifting the market higher.
For bitcoin BTC$88,336.23 bulls, it feels like one setback after another. First precious metals like gold and silver surged to record highs, sucking capital away from the crypto market. And now oil's starting to surge too, threatening to skew macroeconomic forces in favor of bitcoin bears.
The per barrel price for the West Texas Intermediate (WTI) crude, a type of light, sweet crude from Texas fields serving as benchmark for North American energy pricing, has risen by 12% to $64.30 this month. That's the highest price since September. It's European and international benchmark, Brent, has seen a similar rise to $68.22.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up
This is bad news for bitcoin bulls counting on steady inflation and lower interest rates in the U.S. and other parts of the world to reignite the rally. Bitcoin peaked above $126,000 in early October and has since dropped to under $90,000.
Oil feeds into inflation
Oil is a key ingredient in everyday goods and services, so when its price rises, it raises costs across the board. Higher oil makes gasoline pricier raising transport costs for everything, including food deliveries, clothes, electronics and more. These costs are then passed on the final consumer, raising the general price level in the economy.
This, in turn, leads to workers asking higher wages to keep up with rising inflation, leading to a self-fulfilling cycle where salaries climb, companies then raise prices even more.
"We find that oil price pass-through to inflation is both economically and statistically significant, and that it occurs both directly and through second-round effects," Federal Reserve's explainer says. "Higher energy prices can also raise consumer and business expectations for future inflation, indirectly raising food and core prices now."
Central banks typically react to rising inflation by hiking borrowing costs, making credit and money pricier across the board, just as the Fed did in 2022 when it rapidly raised interest rates to tame inflation. Bitcoin fell by 64% that year, with the so-called Fed tightening playing a major role in destabilizing the asset.
The latest oil price upswing comes as the Fed grapples with fresh inflation worries. On Wednesday, the central bank kept interest rates unchanged in the target range of 4.5% to 4.75%, and said inflation remains “somewhat elevated” due to President Donald Trump's tariffs – taxes on goods imported from abroad.
According to ING, the accompanying statement and press conference suggested that the Fed is "more confidence that the policy easing cycle is close to a conclusion."
In other words, the Fed sees no rush to cut rates, and rising oil could firm up its stance against quick liquidity easing.
Why is oil rallying?
Fears of Trump striking Iran, a major oil producer, plus shrinking U.S. inventories are pushing oil prices higher.
In a Truth Social post Wednesday, Trump said that a massive Armada was headed towards Iran and made references to Venezuela, which the US military raided early this month. He asked Iran to make a deal on nuclear weapons or face a "far worse" U.S. attack.
Iran retaliated to Trump's threat by vowing to "respond like never before," while highlighting the human and economic cost of a potential U.S. adventure.
At the same time, the U.S. Energy Information Administration (EIA) data released Wednesday showed that oil inventories in the U.S. decreased by 2.3 million barrels during the week ended Jan. 24.
Dropping oil inventories typically signal stronger demand outpacing supply, where refineries pull more from stocks to meet needs.
Crude OilBitcoin Newscrypto markets
More For You
Pudgy Penguins: A New Blueprint for Tokenized Culture
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
View Full Report
More For You
More than half of bitcoin’s invested supply has a cost basis above $88,000
Most invested bitcoin supply sits above current prices, increasing price vulnerability if key support levels fail.
What to know:
- Around 63% of invested bitcoin wealth has a cost basis above $88,000.
- An onchain measure shows heavy concentration of supply between $85,000 and $90,000, combined with thin support below $80,000.
Read full story
Latest Crypto News
More than half of bitcoin’s invested supply has a cost basis above $88,000
Bybit is adding bank accounts to its crypto platform with eye on U.S. expansion: Bloomberg
Weaker dollar fails to spur bitcoin gains, but there's a reason for that
Number of wallets with 1 million XRP is rising again
UAE's central bank has approved a USD-backed stablecoin
Bitcoin trader warns of downside as gold rally continues to pull focus from BTC
Top Stories
White House to meet with crypto, banking executives to discuss market structure bill
World token jumps 27% as Sam Altman reportedly eyes a biometric social network to kill off bots
Meta and Microsoft continue going big on AI spending. Here's how bitcoin miners could benefit
Federal Reserve holds policy steady as early rate cut bets vanish and bitcoin stalls
Tesla made no changes to bitcoin holdings in Q4 as it booked $239 million digital asset loss
Latest Crypto News
More than half of bitcoin’s invested supply has a cost basis above $88,000
Bybit is adding bank accounts to its crypto platform with eye on U.S. expansion: Bloomberg
Weaker dollar fails to spur bitcoin gains, but there's a reason for that
Number of wallets with 1 million XRP is rising again
UAE's central bank has approved a USD-backed stablecoin
Bitcoin trader warns of downside as gold rally continues to pull focus from BTC
Top Stories
White House to meet with crypto, banking executives to discuss market structure bill
World token jumps 27% as Sam Altman reportedly eyes a biometric social network to kill off bots
Meta and Microsoft continue going big on AI spending. Here's how bitcoin miners could benefit
Federal Reserve holds policy steady as early rate cut bets vanish and bitcoin stalls
Tesla made no changes to bitcoin holdings in Q4 as it booked $239 million digital asset loss
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
Zaldy Co asks SC to halt graft reso
FORMER Party-list Rep. Elizaldy “Zaldy” S. Co has filed a petition before the Supreme Court (SC) to halt an Ombudsman resolution that found probable cause to charge
Share
Bworldonline2026/01/29 21:08
Crypto Executives Advocate for U.S. Strategic Bitcoin Reserve Legislation
Crypto execs, led by Michael Saylor, push for the U.S. to acquire 1 million BTC, establishing a Strategic Bitcoin Reserve. Crypto executives, led by Strategy co-founder Michael Saylor, have gathered in Washington to advocate for a new piece of legislation. This bill, known as the BITCOIN Act, proposes the establishment of a U.S. Strategic […] The post Crypto Executives Advocate for U.S. Strategic Bitcoin Reserve Legislation appeared first on Live Bitcoin News.
Share
LiveBitcoinNews2025/09/18 05:00
Hong Kong Backs Commercial Bank Tokenized Deposits in 2025
The post Hong Kong Backs Commercial Bank Tokenized Deposits in 2025 appeared on BitcoinEthereumNews.com. HKMA to support tokenized deposits and regular issuance of digital bonds. SFC drafting licensing framework for trading, custody, and stablecoin issuers. New rules will cover stablecoin issuers, digital asset trading, and custody services. Hong Kong is stepping up its digital finance ambitions with a policy blueprint that places tokenization at the core of banking innovation. In the 2025 Policy Address, Chief Executive John Lee outlined measures that will see the Hong Kong Monetary Authority (HKMA) encourage commercial banks to roll out tokenized deposits and expand the city’s live tokenized-asset transactions. Hong Kong’s Project Ensemble to Drive Tokenized Deposits Lee confirmed that the HKMA will “continue to take forward Project Ensemble, including encouraging commercial banks to introduce tokenised deposits, and promoting live transactions of tokenised assets, such as the settlement of tokenised money market funds with tokenised deposits.” The initiative aims to embed tokenized deposits, bank liabilities represented as blockchain-based tokens, into mainstream financial operations. These deposits could facilitate the settlement of money-market funds and other financial instruments more quickly and efficiently. To ensure a controlled rollout, the HKMA will utilize its regulatory sandbox to enable banks to test tokenized products while enhancing risk management. Tokenized Bonds to Become a Regular Feature Beyond deposits, the government intends to make tokenized bond issuance a permanent element of Hong Kong’s financial markets. After successful pilots, including green bonds, the HKMA will help regularize the issuance process to build deep and liquid markets for digital bonds accessible to both local and international investors. Related: Beijing Blocks State-Owned Firms From Stablecoin Businesses in Hong Kong Hong Kong’s Global Financial Role The policy address also set out a comprehensive regulatory framework for digital assets. Hong Kong is implementing a regime for stablecoin issuers and drafting licensing rules for digital asset trading and custody services. The Securities…
Share
BitcoinEthereumNews2025/09/18 07:10