As of late January 2026, Bitcoin bulls are facing a punishing “triple threat.” After watching capital rotate into record-breaking gold and silver, investors now face a surging oil market that is effectively killing the dream of rapid interest rate cuts.

Crude oil prices have spiked 12% this month, with WTI hitting $64.30 and Brent climbing to $68.22. For Bitcoin, an asset that thrives on cheap liquidity, this is a worst-case scenario. Energy is the “master resource”; when it gets pricier, everything from food delivery to electronics follows suit. This “pass-through” effect fuels a self-fulfilling inflation cycle, forcing the Federal Reserve to maintain its “higher-for-longer” stance.

The rally is driven by a volatile mix of shrinking inventories and aggressive U.S. foreign policy. President Trump’s recent Truth Social posts regarding a “massive Armada” headed for Iran, following the military raid in Venezuela earlier this month, have injected a massive risk premium into energy markets. Simultaneously, EIA data confirmed a 2.3 million-barrel drop in U.S. inventories, indicating that demand is rapidly outstripping supply.

While bulls hoped for a return to the $126,000 peak seen in October 2025, Bitcoin hovered around $88,000 after the Federal Reserve left interest rates unchanged, with trading subdued despite modest gains in ether, solana, BNB, and dogecoin.

With the Fed holding rates steady at 3.5%–3.75% this week and citing “elevated” inflation from new tariffs, the window for a liquidity-driven crypto moonshot is slamming shut. Investors are currently favouring “real” assets over digital ones as the macro environment shifts from growth-oriented to defensive.

End Notes

Source: https://www.coindesk.com/markets/2026/01/29/first-gold-and-silver-now-oil-s-starting-to-rally-and-that-s-bad-news-for-bitcoin