Bitcoin volatility rises as ceasefire expectations and surging oil prices reshape crypto hedge narrative

According to market analysts, the crypto market has begun pricing in the possibility of a ceasefire as geopolitical tensions drive a sharp rally in oil and test Bitcoin's hedge role. U.S. oil prices have jumped 34.5% this week, while crypto initially saw about $150 billion in inflows before most gains were erased, leaving roughly $50 billion by week's end. The XAU/BTC ratio rebounded 6% intraday, suggesting capital may be rotating back into legacy assets and raising doubts about whether BTC's move beyond $70k reflects lasting hedge demand or short-lived speculation.