Major cryptocurrencies under pressure as oil jumps 3%
Cryptocurrencies face selling pressure as a 3% jump in oil prices stokes inflation concerns and dampens risk appetite across digital asset markets.
Cryptocurrencies are under pressure Monday as a sharp 3% jump in oil prices rattles broader markets and dampens risk appetite. Bitcoin (BTC) and major altcoins have slipped, with traders citing inflation fears triggered by the energy rally. BTC is trading near $67,500, down 2.3% on the day, while Ethereum (ETH) has fallen 3.1% to $3,450, according to NowPrice data. The broader crypto market cap has shed roughly $40 billion, reflecting a risk-off shift across digital assets.
The move higher in crude comes amid supply concerns and geopolitical tensions, pushing the commodity to multi-week highs. For digital assets, higher oil prices typically feed into inflation expectations, which could prompt central banks to maintain or even tighten monetary policy. That scenario tends to weigh on speculative assets like cryptocurrencies, as higher rates reduce the appeal of non-yielding investments. This dynamic is amplified by the current macroeconomic backdrop: the 10-year US Treasury yield has climbed to 4.35%, and the DXY dollar index is hovering near 105.5, both historically correlated with downward pressure on BTC. Additionally, on-chain data shows Bitcoin exchange reserves have dropped to multi-year lows, indicating long-term holder conviction, but whale concentration remains elevated—the top 1% of addresses control over 85% of supply, making the market susceptible to large sell orders. Miners are also feeling the pinch, with the post-halving break-even cost now estimated above $50,000 per BTC, meaning sustained price weakness could force capitulation. Traders can monitor the evolving price action on NowPrice's live crypto dashboard to track real-time moves across major pairs.
Looking ahead, market participants will watch for any further escalation in energy markets and upcoming US inflation data for clues on the Federal Reserve's next move. A sustained rise in oil could keep pressure on crypto prices, while a pullback might offer relief for risk assets. Key levels to watch include BTC support at $65,000 and resistance near $70,000; a break below the former could trigger a test of the $60,000 range, where miner profitability becomes a critical floor. On the flip side, a dovish pivot from the Fed or a sharp decline in oil could reignite risk appetite, potentially driving BTC toward its all-time high above $73,000. ETF flow data will also be crucial—recent outflows from US spot Bitcoin ETFs have totaled over $500 million in the past week, and a reversal in that trend could signal renewed institutional interest.