Bitcoin slipped to around $67,500 on Monday as oil prices surged past $100 per barrel for the first time since Russia’s 2022 invasion of Ukraine.
The spike triggered a sharp drop in U.S. stock futures and global equity markets, pulling crypto lower alongside traditional risk assets.
The cryptocurrency, once promoted as a hedge against financial turmoil, moved largely in sync with the Nasdaq as investors cut exposure to risk across markets.
Oil Shock Hits Global Markets
The market shock followed an escalating U.S.–Israel conflict with Iran that has effectively shut the Strait of Hormuz, the narrow waterway responsible for roughly 20% of global oil shipments.
U.S. crude futures surged more than 35% last week, marking the largest weekly gain since the contract began trading in 1983.
Prices briefly climbed to $119 per barrel on Sunday before easing to about $103 after G7 officials signaled they were considering releasing strategic reserves to stabilize markets.
The turmoil quickly spread across financial markets.
Dow Jones Industrial Average futures dropped as much as 1,011 points overnight, a decline of more than 2%.
S&P 500 futures fell about 1.1%, while Nasdaq-100 futures declined 1.2%.
Meanwhile, the CBOE Volatility Index (VIX), often called Wall Street’s fear gauge, rose above 30 for the first time since April.
Oil supply concerns intensified after Kuwait confirmed production cuts and Iraqi output reportedly fell around 70%. The disruptions come as energy infrastructure across the Gulf faces repeated attacks.
Qatar’s energy minister told the Financial Times that Gulf producers could halt production within days if tanker traffic through the Strait does not resume.
Analysts say such a scenario could push oil prices toward $150 per barrel.
Bitcoin Tracks Macro Forces
Bitcoin traded near $67,579, up roughly 1% on the day. However, the modest gain masks weaker recent performance.
The asset is down about 3% over the past month and roughly 23% lower since the start of the year. Prices remain well below the record high reached in October 2025.
Market observers say Bitcoin is increasingly behaving like a macro-sensitive asset rather than an independent store of value.
According to CoinDesk, the cryptocurrency is reacting more strongly to global liquidity conditions, interest-rate expectations, and equity sentiment than to crypto-specific news.
Several bullish developments have failed to move prices. These include Kraken gaining access to the Federal Reserve payment system and Morgan Stanley appointing BNY Mellon as ETF custodian.
Institutional adoption has strengthened Bitcoin’s ties to traditional markets. Hedge funds and asset managers now frequently treat the asset as part of a broader portfolio of growth assets.
When liquidity tightens and equities decline, crypto tends to fall as well.
BitMEX co-founder Arthur Hayes recently warned that Bitcoin’s brief rally toward $74,000 likely reflected a technical rebound, not the start of a sustained uptrend.
Stagflation Concerns Grow
The sharp oil rally has also revived fears of stagflation, a combination of rising inflation and slowing economic growth.
“We can’t rule out a bear market if investors begin to anticipate a 1970s-style stagflation scenario,” said Ed Yardeni, president of Yardeni Research.
Average U.S. gasoline prices reached $3.45 per gallon, according to AAA, up 16% from the previous week.
GasBuddy analyst Patrick De Haan estimates there is an 80% chance prices could reach $4 per gallon within a month.
Rising inflation expectations have also pushed 10-year Treasury yields higher, adding pressure on growth stocks and digital assets.
