Bitcoin Price Falters as WTI Crude Oil Surges Above $100 per Barrel
By Helene Braun | Edited by Stephen Alpher
March 30, 2026, 8:28 p.m.
After early gains Monday, Bitcoin (BTC) and the broader U.S. stock market retreated as the price of West Texas Intermediate (WTI) crude oil surged above $100 per barrel for the first time since 2002. The energy price spike pressured risk assets, including cryptocurrencies, even as Federal Reserve Chairman Jerome Powell sought to ease market concerns about potential interest rate hikes.
Powell Assures Markets, But Oil Pressures Stocks and Crypto
Speaking at Harvard University, Fed Chair Jerome Powell acknowledged the recent surge in oil prices, driven by geopolitical tensions involving Iran, but emphasized that the Federal Reserve is currently inclined to hold interest rates steady. He highlighted that inflation expectations remained well anchored despite the short-term energy shock.
“Our focus remains on inflation expectations, which are still well anchored,” Powell said. “We are not yet facing the question of policy adjustments in response to these energy price changes because the full economic impacts remain uncertain.”
Powell’s remarks helped calm a jittery bond market, which had priced in a heightened probability of imminent rate hikes. On Monday, the yield on the benchmark 10-year U.S. Treasury note dropped by nine basis points to 4.35%, while the 2-year yield fell eight basis points to 3.83%. Meanwhile, the CME FedWatch tool showed that the odds of one or more rate hikes this year fell sharply from 25% last Friday to just 5% on Monday.
Oil Price Surge Hits Risk-On Sentiment
Despite the bond market relief, oil prices surged sharply. WTI crude rallied 5.3% to close just below $105 per barrel. Although intraday levels had surpassed $100 since the outbreak of the Iran conflict, this marked the first close above the century mark in four years.
The continuing increase in oil prices added pressure on risk assets, with U.S. stocks giving back earlier gains. The tech-heavy Nasdaq Composite dropped 0.75% by market close, and the S&P 500 declined 0.4%. Bitcoin mirrored the pattern, slipping back to around $66,500 after earlier gains, effectively holding steady on a 24-hour basis but losing momentum.
Market Implications and Outlook
The rally in oil prices underscores ongoing energy supply concerns linked to Middle East geopolitical risks. While Powell’s caution signals a temporary Fed pause, rising energy costs threaten to complicate the inflation outlook and weigh on consumer spending, potentially leading to longer-term economic impacts.
“We will eventually maybe face the question of what to do here,” Powell said regarding the surging oil prices. “But for now, we are monitoring the situation closely before making decisions.”
The rise in energy prices combined with cautious economic signals may keep markets volatile in the near term, as investors weigh the balance between inflation risks and central bank policy responses. Cryptocurrencies, often sensitive to risk sentiment, could continue to experience choppy price action influenced by broader macroeconomic trends.
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