Bitcoin Shows Strength at $67K Amid Oil Surge and Inflation Fears

Bitcoin (BTC) traded above $67,000 on Monday after posting its first bullish weekly close in seven weeks. Meanwhile, oil prices surged as the Middle East conflict prompted fears of a major supply shortage.

Key takeaways:

• Bitcoin holds firm above $67,000 as oil prices surge to the highest level since 2022.

• Analysts warn that the oil supply shock could trigger global inflation concerns.

• A bullish inverted hammer on the weekly chart suggests a potential BTC bottom.

Global oil supply shock sparks inflation worries

Data from TradingView showed oil futures rose to $119 per barrel during early Asian trading hours on Monday, as the escalating Middle East conflict raised fears of supply disruptions.

This is the highest price oil has reached since Russia invaded Ukraine in 2022.

The latest surge in oil prices came as Iraq warned that roughly 3 million barrels per day of production could be disrupted due to Iranian threats against tankers in the Strait of Hormuz.

Related: Bitcoin preps fresh trend line showdown as weekly close sparks $60K target

Capital markets commentator The Kobeissi Letter said the world is now experiencing the “largest oil supply shock in history,” losing nearly 20 million barrels of oil supply daily.

Despite the exploding oil prices, US President Donald Trump said it’s a “small price” to pay for peace.

Meanwhile, the sharp rise in oil prices and the imminent supply shock has revived global inflation concerns, with markets seeing few chances of rate cuts in 2026.

Polymarket bettors are pricing in a roughly 99% probability that the Federal Reserve leaves rates unchanged at its March 18 meeting, with only about a 27% chance of a 25-basis-point cut in 2026.

Leaving rates unchanged tightens financial conditions, boosts the dollar, and pressures Bitcoin, which often sees short-term volatility as investors rotate capital into safe-haven assets such as gold.

Has Bitcoin price already bottomed?

At the time of writing, Bitcoin traded around $67,000 with little sign of panic selling, suggesting that traders treated the spike as an energy-specific shock rather than a broad risk-off event.

“Bitcoin’s refusal to go down when the rest of the market is burning is one of the strongest indications I’ve seen yet that the bottom could be in,” analyst Brian Brookshire said in an X post on Monday, adding:

Despite being rejected from the $74,000 resistance level, the BTC/USD pair still produced the “first positive weekly candle in 7 weeks,” founder and CEO at CoinBureau Nic Puckrin said on Monday.

The price action has also formed an “inverted hammer, which could indicate a potential bullish reversal,” Puckrin added.

An inverted hammer weekly candle is a bullish reversal pattern found at the end of a downtrend. It features a small body at the lower end, little to no lower wick, and a long upper wick at least twice the size of the body. It signals that buyers are challenging sellers, potentially reversing the trend.

Thus, Bitcoin could move higher if this pattern is confirmed by a strong bullish follow-through candle this week, with higher volume to break overhead resistance.

As Cointelegraph reported, spikes in oil prices immediately after conflicts tend to be short-lived, with Bitcoin outperforming over the longer term.