Despite the Trump administration’s recent efforts to curb energy costs, U.S. benchmark West Texas Intermediate (WTI) touched $100 a barrel on Friday, while global benchmark Brent crude hit $117 a barrel. The spike in oil prices has amplified inflation concerns, strengthening the case for Federal Reserve interest rate hikes, an outlook that typically weighs on both crypto and traditional equities.
Analysts See Healthy Consolidation and Election Upside
Adding further headwinds, a report by Amina Research highlighted a shift in broader market sentiment, noting that Thursday’s cross-market sell-off was fueled by growing investor skepticism over the long-term sustainability and return on investment (ROI) of artificial intelligence expenditures. As mega-cap tech firms continue to deploy massive capital into AI infrastructure without immediate, proportional revenue gains, traders are increasingly questioning whether current market valuations are sustainable.
Meanwhile, Mitchell Askew, head of Blockware Intelligence at Blockware, insisted that bitcoin’s pullback to under $82,000, where it has held in recent weeks, is healthy price action.
“Holding that range while the 10-year sat at 20-plus-year highs and equities repriced the AI trade tells you the marginal seller has been exhausted. Today’s move is bitcoin getting sold alongside tech in a broad risk-off session, nothing more. The bigger signal is the bond market: Yields falling sharply means the market is starting to price in a Fed response, and historically that shift in liquidity is when bitcoin performs best,” Askew said.
Askew added that bitcoin will likely perform well once the upcoming U.S. elections are behind us, just as it has done following each of the last three election cycles.
“We’re confident the market is in an uptrend here,” Askew said. “The dip below $82K is a pullback within a base that has been building since the summer, and we expect it to resolve higher.”
