Bitcoin climbed to its highest level in more than two months on 17 Apr, as a sharp decline in oil prices eased inflationary concerns and boosted risk appetite across global markets.
Bitcoin Hits Two-Month High as Oil Slumps, Crypto Stocks Rally
17 April 2026 - 18:41 CEST
By Ana Pereira
The leading cryptocurrency traded near $78,000 in US session trading, up roughly 5% over the past 24 hours. That marked its strongest performance since early February, according to major exchange data.
The move coincided with Brent crude oil falling more than 10% to around $89 per barrel at 16:30UTC, returning prices to those seen at the end of the first week of the conflict in March. The Strait of Hormuz, through which roughly one-fifth of global oil trade passes daily, has been a focal point of supply disruption fears.
Risk sentiment rebounds
Lower oil costs reduce the threat of renewed inflation, improving expectations for potential Federal Reserve rate cuts later this year. Bitcoin benefits in this environment both as a risk-on asset favoured by institutional investors through spot exchange-traded funds and increasingly as "digital gold" during periods of macroeconomic uncertainty.
President Donald Trump noted on Truth Social that Iran had committed to keeping the vital waterway open, contributing to the positive shift in sentiment. A temporary ceasefire between Israel and Lebanon added to hopes that the seven-week US-Iran conflict, which began with strikes in late February, may de-escalate.
The conflict had already redirected trade flows, with buyers in Europe and Asia turning more to US barrels as Gulf shipments slowed, Reuters reported.
Crypto assets rally alongside equities
These developments lifted sentiment across digital assets and traditional markets in tandem. Ether rose almost 5% intraday to trade around $2,460 at 16:30UTC, while XRP gained around 3% to $1.50 and Solana gained roughly 1% to near $90, reflecting recovering confidence across the altcoin sector.
US-listed crypto equities posted sharper advances. Coinbase Global, operator of the largest US cryptocurrency exchange, climbed almost 7% intraday. Strategy, a business intelligence software provider known for its aggressive Bitcoin holdings on its corporate balance sheet as a treasury strategy, surged nearly 14%. Bitcoin mining company Riot Platforms advanced about 9%.
Traditional indices extended gains in sympathy. The S&P 500 pushed above 7,100 to a fresh record, recovering from earlier oil-driven volatility. The Dow Jones Industrial Average rose around 2%, and the Nasdaq Composite gained roughly 1.5%.
Onchain metrics offered mixed signals on rally conviction. Exchange reserves for Bitcoin have trended toward multi-year lows amid institutional accumulation, while some short-term holder distribution appeared at resistance levels, pointing to a combination of sentiment-driven momentum and underlying positioning strength. Trading volumes on major platforms remained elevated.
Bitcoin correlation with oil remains low long term
Historically, Bitcoin shows negligible long-term correlation with oil prices, with analysts from Binance Research describing the coefficient as often indistinguishable from zero outside brief periods of shared liquidity effects. During past geopolitical shocks, such as the Russia-Ukraine war or earlier Strait of Hormuz tensions, Bitcoin frequently decoupled from energy moves and recovered on liquidity expectations rather than direct commodity links. In the short term, however, BTC remains sensitive to macro signals, including inflation outlooks and Fed policy paths transmitted through oil volatility.
This dynamic explains why Friday’s oil relief rally provided a clear tailwind. With the effects of higher crude prices on inflation expected to wane later in the year, markets are pricing in a higher likelihood of Federal Reserve rate cuts in the second half of 2026, though officials have signalled caution and futures imply the first easing may slip towards later in the year or beyond. Any sustained de-escalation in the region could reinforce this outlook and support further upside for risk assets, including Bitcoin.
Outlook hinges on ceasefire durability
The temporary nature of the Israel-Lebanon truce and Iran's Hormuz commitment leaves room for reversal if talks falter. Renewed disruptions risk reigniting inflation worries and reversing recent momentum.
