Why Is Crypto Up Today? Oil Price Drop and ETF Inflows Drive Market Rally

Highlights:

• The crypto market is rising today as falling oil prices reduce inflation fears.
• Bitcoin moved above $72K and pushed the broader crypto market into the green zone.
• Short liquidations worth $254 million accelerated the rally as traders rushed to close bearish positions.

The cryptocurrency market is up today after a sharp drop in oil prices eased inflation concerns and improved investor risk appetite. Bitcoin briefly climbed above $72,000 during the session. The move lifted the broader crypto market and pushed several major altcoins higher. U.S. stock index futures also moved slightly higher as risk sentiment improved.

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Market data also reflects the rebound. The total crypto market cap rose 2.45% to $2.43 trillion at press time. Trading volume climbed 11.12% to $108.12 billion as activity returned across exchanges. The Crypto Fear and Greed Index now stands at 30. Here are the major drivers of today’s rally.

Bitcoin Leads the Crypto Market Rally

Bitcoin led the market rebound as its price pushed above key levels during the session. The asset briefly moved past $72,500 before stabilizing near $72,396 as of press time. Bitcoin has gained about 2.65% in the past 24 hours.

Ethereum led the altcoin rebound, gaining 2.91% on the daily chart. ETH is trading near $2,114 at the time of writing. The asset holds a market cap of $255.21 billion. Trading volume jumped 29.4% to $24.68 billion. Most altcoins are now trading in the green zone on the daily chart.

Oil Prices Drop and Ease Inflation Concerns

Oil prices played a major role in the market move. Brent crude dropped more than 7% during the session. Energy markets had rallied earlier this week after attacks on oil tankers in the Middle East. The incident raised fears of supply disruptions. The prices later pulled back as supply expectations improved. Lower oil prices often reduce inflation pressure across global markets. Investors usually increase exposure to risk assets when inflation concerns ease.

Treasury Move on Russian Oil Sparks Market Reaction

Another catalyst came from comments by U.S. Treasury Secretary Scott Bessent. He said the government would allow temporary purchases of Russian oil stranded at sea. The measure aims to increase global supply and stabilize energy markets.

Bessent said the authorization would remain limited and temporary. The policy applies only to oil shipments already in transit. He stated, “This narrowly tailored measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government.”

.@POTUS is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime.

To increase the global reach of existing supply, @USTreasury is providing a temporary…

— Treasury Secretary Scott Bessent (@SecScottBessent) March 12, 2026

Short Liquidations Accelerate the Crypto Rally

The rally also triggered a wave of liquidations across leveraged markets. Data from CoinGlass shows total liquidations reached $254.03 million in the past 24 hours. Short positions accounted for $178.74 million of the total. Many traders had positioned for further downside before the rally began. The rising prices forced them to close those positions. This process added more buying pressure to the market. The crypto market open interest also increased 5.2% during the session.

ETF Inflows Strengthen Institutional Demand

Institutional demand also supported the rebound. U.S. spot Bitcoin ETFs recorded another day of net inflows. Data from Farside Investors shows the funds attracted $53.8 million on March 12. BlackRock’s iShares Bitcoin Trust led the inflows. The fund added $46.1 million during the session. Most of the demand remained concentrated in the largest ETF. Spot Ethereum ETFs also recorded three consecutive days of inflows.

Traders Remain Cautious Despite Recent Rally

Despite the rising investor appetite, traders are also watching a large derivatives event scheduled for today. Data from Deribit shows nearly 27,000 Bitcoin options contracts will expire during the session. The contracts hold a notional value of about $1.9 billion. The put-to-call ratio stands at 0.97.

🚨 Options Expiry Alert | 08:00 UTC Friday
~$2.27B in crypto options are set to expire on Deribit.$BTC: 26,889 contracts | $1.89B notional | P/C: 0.97
OI stacked at $55K-$60K puts vs $75K-$80K calls, spot at $70.2K sitting right in no man’s land.
Max Pain: $69K$ETH: 185,268… pic.twitter.com/H9zji7lzbW

— Deribit (@DeribitOfficial) March 12, 2026

Traders are also monitoring the upcoming U.S. PCE inflation report. The data may influence expectations around interest rates. Bitcoin’s ability to hold recent gains may determine whether the broader crypto market can sustain this rebound in the coming sessions.

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