Oil price shoots up: bad news for crypto and risk assets

The oil price is showing a sharp rise, and that is not good news for the crypto market. WTI crude oil is currently trading around $90.46 per barrel, an increase of almost 4.61% on the three-day chart. Analyst DaanCrypto is raising the alarm: this kind of price action is exactly what investors in risky assets do not want to see.

High oil price weighs on risky investments

The chart clearly shows that the oil price, after a long downward trend towards $57 in 2025, is making a spectacular turnaround. At the start of 2026, the price shoots up to above $110, followed by a correction. Currently, the price is climbing again towards $90, sending worrying signals for the broader market.

DaanCrypto argues that a high oil price goes hand in hand with higher uncertainty and rising inflation. These are three factors that typically hit risky assets such as stocks and crypto hard. When inflation rises, the Federal Reserve tends to tighten monetary policy, which reduces the appetite for speculative investments.

Trump taco or the start of a real rally?

The big question is whether this oil price rise will persist or whether it is a short-lived move. DaanCrypto refers to the phenomenon of the so-called ‘Trump taco’, a pattern where market movements are temporarily inflated by political statements or decisions by President Trump, only to quickly fall back afterwards.

Whether this rally is structural remains to be seen. If the oil price remains high or rises further, it will act as a real brake on the recovery in the crypto market. Investors are keeping a close eye on developments, because historically the combination of expensive energy, inflation and uncertainty is not fertile ground for big profits in digital assets.