Analysts warn that high oil prices could hinder Bitcoin's capital inflows, while market sentiment cools without major sell-offs.
High oil prices are creating a challenging environment for Bitcoin capital inflows, according to analyst Darkfost in a report on CryptoQuant. He highlighted that Brent crude has surpassed $100 per barrel, attributing this rise to tensions in the Persian Gulf and increased Ukrainian attacks on Russian oil refineries.
Darkfost pointed out that elevated energy costs drive up the production expenses of goods and services, intensifying inflationary pressures and the risk of economic slowdown, which in turn restricts market liquidity.
Historically, a sustained increase in Brent prices above the yearly average has often coincided with a slowdown in Bitcoin's momentum, while sharp declines in oil prices have been followed by recoveries in the cryptocurrency market.
"Economic conditions are not very favorable for the influx of new liquidity," the analyst noted.
Despite these concerns, Darkfost did not rule out the possibility of continued growth for Bitcoin, suggesting that capital redistribution among markets could provide support.
Cooling Sentiment in Cryptocurrency Markets
Amidst these developments, analyst Axel Adler Jr. observed a cooling sentiment surrounding digital assets without a significant sell-off. He reported that Bitcoin sentiment has dropped from a peak of 83 in late August to 45, moving out of the Extreme Greed zone, while the asset's price has remained within a narrow range.
Bitcoin sentiment is cooling, dropping from 83 (peak on August 26) to 45 and exiting the Extreme Greed zone, while the price has held in a narrow range over the same period. The overheating has cleared without a sell-off, which is a healthier base for the market.
ā Axel šš Adler Jr (@AxelAdlerJr) October 24, 2026
Other indicators also reflect a decrease in optimism. The cryptocurrency Fear & Greed Index has fallen from 71 to 51, and the proportion of bullish votes on CoinGecko decreased from 78% to 72%.
Adler Jr. considered this trend as a sign of market improvement, indicating that excessive optimism has diminished without a price crash.
"The overheating has cleared without a sell-off, creating a healthier foundation for the market," he added.
Additionally, data on ETF inflows reveal cautious investor sentiment. From October 19 to 23, Bitcoin-based products attracted a net influx of $442 million, breaking a two-week streak of outflows. In contrast, Ethereum ETFs experienced a loss of $224 million, marking the fourth consecutive week of negative performance.
It is worth noting that DWF Labs expressed skepticism regarding the relationship between ETF inflows and Bitcoin's future performance.
