Oil prices tumbled up to 15% on May 7 following a report that the United States and Iran are nearing a 14-point deal to reopen the Strait of Hormuz. According to Axios, the White House has made significant progress, and CNBC reported that Brent crude fell to $101 and WTI dropped below $95. The sharp decline in energy costs sparked a rally in risk assets, with Bitcoin pushing above $80,900 as lower oil prices signal reduced inflationary pressures ahead.
Adding to the bullish momentum, VanEck’s Matthew Sigel told CNBC on the same day that $1 million per Bitcoin is now the firm’s base case, citing the first central bank purchasing BTC for reserves. This institutional endorsement comes on the heels of record-breaking spot Bitcoin ETF inflows: $2.44 billion in net inflows during April alone, the strongest month since the 2025 peak. Bitcoin also held above $81,000 for the first time since January, with five consecutive days of positive ETF flows. The Fear and Greed Index has swung from extreme fear to neutral in a matter of weeks.
The combination of easing geopolitical tensions, lower energy costs, and surging institutional interest has historically preceded strong performance across the crypto market, particularly in meme coins, which led the breakout in previous cycles. Analysts note that the current macro environment is rekindling risk appetite, and Bitcoin’s price recovery above key resistance levels suggests further upside may be in store.
