Bitcoin trades above $77,000 as oil pullback offers temporary relief

Bitcoin stabilized above $77,000 over the weekend after a decline in oil prices eased some pressure on risk assets. The move came as Brent crude oil, after surging to $109.97 per barrel on Friday, reversed course to settle at $104.61. West Texas Intermediate closed at $100.05. Despite the late pullback, Brent finished the week up more than 8%, reflecting ongoing concerns over oil supply disruptions in the Middle East.

Crypto reacts to oil-driven inflation jitters

Bitcoin responded to the retreat in oil with a rebound, rising about 0.9% on Friday to close near $77,200 after dipping as low as $76,100 earlier in the session. The leading cryptocurrency continued to hold steady, trading around $77,300 on Saturday. Other risk assets joined the recovery, with the S&P 500 gaining 0.86%, the Nasdaq rising 0.96%, and the Dow up 0.98%.

Recent volatility in the crypto market has been closely tied to oil prices, which have become a major macroeconomic factor. Higher energy costs contribute directly to rising inflation and shape expectations for interest rate decisions from global central banks.

U.S. inflation data reinforced these concerns. The consumer price index for August climbed 0.4% month-over-month and 3.4% compared to the previous year, while the producer price index increased by 5.4%. With crude oil trading above $100, analysts estimated that market odds for a Federal Reserve rate hike in the coming week had risen to between 85% and 90%.