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SKN | Bitcoin Breaks Above $90,000 as Oil Prices Rise on Renewed Russia–Ukraine Tensions

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Bitcoin climbed back above the $90,000 mark on Monday, rallying alongside a broader move higher in commodities as hopes for a near-term peace deal between Russia and Ukraine faded. The renewed geopolitical tension lifted energy prices and reignited inflation hedging behavior across global markets, offering a tailwind to cryptocurrencies after weeks of choppy trading.

The move came amid thin year-end liquidity but was notable for its cross-asset consistency, with digital assets, oil and select equities all responding to deteriorating expectations for a diplomatic breakthrough in Eastern Europe.

Crypto Markets React to Geopolitical Stress

Bitcoin rose more than 2% during Monday’s session, trading above $90,000 after struggling to hold that level in recent weeks. The rally extended across major cryptocurrencies, with ether gaining more than 3% to trade above $3,000, while XRP and solana posted similar percentage advances.

The price action suggests that, despite lingering risk aversion in late December, investors remain willing to rotate back into crypto when macro catalysts align. Bitcoin’s rebound also comes after a period of underperformance relative to commodities, which have dominated the inflation-hedge narrative in recent weeks.

Crypto markets have increasingly traded as part of a broader macro basket, responding to shifts in inflation expectations, real yields and geopolitical risk rather than purely crypto-native developments. Monday’s move reinforced that pattern, as digital assets tracked the same drivers lifting oil prices.

Oil Rallies as Peace Hopes Weaken

Crude prices moved higher after reports of fresh attacks on energy infrastructure underscored the fragility of diplomatic efforts between Moscow and Kyiv. West Texas Intermediate crude rose about 1% to $57.24 per barrel, while Brent crude gained roughly 0.8% to $60.81.

Russia struck a combined heat and power plant operated by Naftogaz in Ukraine’s Kherson region, damaging infrastructure critical to winter heating. Ukraine, in turn, attacked the Syzran oil refinery in Russia’s Samara region, reportedly disrupting the facility’s primary processing unit.

These developments dented optimism around a proposed peace framework, despite public signals from U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky that discussions were progressing. With the conflict now approaching its fourth year, energy markets remain highly sensitive to any sign that hostilities could escalate rather than de-escalate.

Inflation Hedges Back in Focus

The renewed rise in oil prices matters for crypto because energy costs remain a key driver of global inflation expectations. Higher crude prices feed directly into transportation, manufacturing and consumer costs, complicating central banks’ efforts to maintain disinflation momentum.

Bitcoin has often been positioned as a hedge against monetary debasement and inflation shocks, though that narrative has been inconsistent in recent months as metals outperformed digital assets. Monday’s synchronized move in oil and crypto suggests that some investors are again treating bitcoin as part of a broader inflation-sensitive trade.

Asian equity markets were mixed, reflecting the holiday-thinned environment, though South Korea’s KOSPI rose 1.7% on strength in semiconductor stocks. The muted response in equities contrasted with the sharper reaction in commodities and crypto, highlighting where marginal capital is flowing as the year draws to a close.

Investor Sentiment and What Comes Next

The rebound above $90,000 does not, on its own, resolve bitcoin’s broader technical challenges, particularly resistance near recent highs. However, it shows that downside momentum remains fragile when macro risks resurface.

Looking ahead, sustained gains will likely depend on whether geopolitical tensions continue to pressure energy markets and whether inflation expectations reaccelerate into early 2026. If oil prices remain firm and global uncertainty persists, bitcoin could regain relevance as a macro hedge. Conversely, any renewed progress toward peace or easing in energy prices may once again shift capital away from crypto toward traditional risk assets.

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