Looking at the market over the past few months, precious metals have hit record highs, and now crude oil is entering an upward phase. I think this is quite a tough situation for Bitcoin investors.

The latest movements in crude oil prices are quite interesting. WTI crude oil has risen 12% this month, reaching $64.30 per barrel. Brent crude is also trading at $68.22. These are levels not seen since September. What this indicates is a high likelihood that inflationary pressures are intensifying.

When crude oil prices go up, not only do gasoline prices increase, but transportation costs for food delivery, clothing, and electronics all rise as well. As a result, consumer burdens increase, and overall prices in the economy are pushed higher. Workers demand wage hikes, and companies raise prices further. If this vicious cycle continues, inflation accelerates.

The Federal Reserve also seems to recognize this pressure. In last week's statement, they kept the policy interest rate steady at 4.5–4.75% and explicitly stated that inflation is "somewhat elevated." This signals they are not in a hurry to cut rates. Bitcoin bulls had expected rate cuts to boost the market, so this was an unexpected development.

The main reasons for the sharp rise in crude oil are geopolitical risks surrounding Iran and declining US inventories. If tensions with Iran escalate, supply concerns could push prices even higher. According to data from the US Energy Information Administration, crude oil inventories decreased by 2.3 million barrels last week. Supply is tightening.

As for Bitcoin, after peaking above $126,000 in early October, it has since corrected to below $90,000. The macro environment seems to be turning adverse. The rise in precious metals indicates inflows seeking inflation hedges, but this is also drawing capital away from Bitcoin.

By the way, there was news that SpaceX holds about 8285 Bitcoin worth roughly $600 million. Despite reporting a loss of around $5 billion in 2025, the company continues to hold its Bitcoin assets. This reflects a long-term view of Bitcoin as a corporate asset, but it’s clear that the overall market is now under short-term pressure.

Looking at the latest trends in crude oil prices, it really seems like inflationary pressures are intensifying. For Bitcoin investors waiting for monetary easing, the environment is likely to remain tough for the time being.