Bitcoin Drops Below $79,000 Amid Rising Oil Prices and Inflation Concerns

Bitcoin's price has fallen below $79,000 as investors become increasingly cautious ahead of US inflation data. The cryptocurrency was trading at $78,339 on Tuesday, down 1.43% in the past 24 hours.

Nischal Shetty, founder of WazirX, notes that rising oil prices could amplify tighter liquidity expectations and impact Bitcoin's next move. With oil above $92, investors are watching to see if this will translate into higher inflation and Federal Reserve policy tightening.

Despite the price weakness, institutional demand remains strong, with US spot Bitcoin ETFs attracting nearly $987 million last week, while Ether ETFs added roughly $218 million. This suggests that the recent pullback has not yet been accompanied by a broader retreat in institutional demand.