$100 Oil Sends Warning Signs to Crypto Investors

The price of Brent crude oil has risen to near $99 a barrel, causing concern that it could reach $100. This increase follows Iran's plan to declare a maritime 'exclusion zone' around the Strait of Hormuz and its promise for a more intense response after US strikes on three Iranian oil tankers.

The higher oil price is expected to trigger an inflation shock, which may complicate the Federal Reserve's rate-cut plans. Higher interest rates and Treasury yields make safer assets more attractive, putting pressure on Bitcoin.

However, if $100+ oil hurts growth badly, it could create a bullish setup for Bitcoin as aggressive Fed cuts become necessary.