Why is Crypto Crashing? Oil prices jump and that puts fresh pressure on Bitcoin

Group 1: Bitcoin and Market Dynamics - Bitcoin is classified as a commodity by the SEC and CFTC, yet it is currently facing significant selling pressure, remaining below $90,000 after peaking near $126,000 in October [1][2] - The general expectation among traders is that the downtrend observed in Q4 2025 is over, with prices anticipated to break higher soon [1] - The current market backdrop is concerning, with inflation and high interest rates causing nervousness among investors [3] Group 2: Impact of Oil Prices - Oil prices are rising rapidly, with West Texas Intermediate (WTI) crude increasing nearly 12% this month to $64, which adds pressure on Bitcoin prices [2][5] - Higher energy prices contribute to inflation, leading to increased costs for consumers and businesses, which can negatively impact risk assets like cryptocurrencies [4][5] - The Federal Reserve closely monitors energy prices, as rising costs can lead to sustained high interest rates, further affecting the crypto market [5][6] Group 3: Geopolitical Tensions - Escalating tensions with Iran pose additional risks, particularly with the U.S. deploying an aircraft carrier strike group to the Middle East, which could impact oil supply routes [7] - Traders are concerned about a potential worst-case scenario involving the Strait of Hormuz, a critical passage for 20% of the world's oil [7]