【Oil surges to $110 overnight, while crypto acts like it didn’t hear a thing 😅🛢】
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Oil surged to $110 overnight, while crypto acted like it didn’t hear a thing. Brent closed Thursday at $109.86, up 3.7% on the day. The last time it was at this level was back in May. Oil moved first, while $BTC is still hovering around $82,000. 🛢
Two things set it off, both heating up at once. At least nine oil tankers have been attacked in the Strait of Hormuz this week. On Wednesday, the cargo ship GFS Pride was sunk outright. Yemen’s Houthi forces fired missiles at Saudi Arabia. Even one was intercepted near Yanbu Port. Ukraine says it will resume strikes on Russian oil refineries. 🔥
The supply-side numbers are even more stark. Crude oil exports through the Strait of Hormuz have fallen to 9.4 million barrels a day—just 70% of the pre-war average. U.S. commercial crude inventories fell by more than 8 million barrels in a week. The average price of diesel across the U.S. is $6.33 a gallon, 70% higher than a year ago. ⛽
The knock-on effects are nothing new. Higher oil prices push up inflation, and inflation keeps rate cuts at bay. Risk assets take the hit first. U.S. tech stocks lost over $1 trillion in market value in a week. Gold fell to $4,163, closing the week in the red. In plain English, money is looking for an exit, but it hasn’t found crypto. 📉
Spot ETFs saw net outflows of around $146 million over four days this week. My personal take is that this time, the safe-haven narrative hasn’t reached crypto. The real havens are still the dollar and short-term bonds, plus physical oil. For high-volatility assets like $ETH , it’s the valuation denominator that changes first. 🪙
I think the key isn’t the oil price itself, but how long it stays elevated. If oil stays above $100 for the whole month, inflation expectations will be repriced. At that point, whether you chase the rally depends on whether you believe in this chain. 🧮
📌 Oil breaks $110, and the first bill crypto has to pay is the valuation hit.
Here’s a question for you: If oil stays above $100 for the whole month, would you reduce your position or add to it? Let’s talk in the comments.
Join Mr. X’s fan group chat on my homepage 🔥
Oil surged to $110 overnight, while crypto acted like it didn’t hear a thing. Brent closed Thursday at $109.86, up 3.7% on the day. The last time it was at this level was back in May. Oil moved first, while $BTC is still hovering around $82,000. 🛢
Two things set it off, both heating up at once. At least nine oil tankers have been attacked in the Strait of Hormuz this week. On Wednesday, the cargo ship GFS Pride was sunk outright. Yemen’s Houthi forces fired missiles at Saudi Arabia. Even one was intercepted near Yanbu Port. Ukraine says it will resume strikes on Russian oil refineries. 🔥
The supply-side numbers are even more stark. Crude oil exports through the Strait of Hormuz have fallen to 9.4 million barrels a day—just 70% of the pre-war average. U.S. commercial crude inventories fell by more than 8 million barrels in a week. The average price of diesel across the U.S. is $6.33 a gallon, 70% higher than a year ago. ⛽
The knock-on effects are nothing new. Higher oil prices push up inflation, and inflation keeps rate cuts at bay. Risk assets take the hit first. U.S. tech stocks lost over $1 trillion in market value in a week. Gold fell to $4,163, closing the week in the red. In plain English, money is looking for an exit, but it hasn’t found crypto. 📉
Spot ETFs saw net outflows of around $146 million over four days this week. My personal take is that this time, the safe-haven narrative hasn’t reached crypto. The real havens are still the dollar and short-term bonds, plus physical oil. For high-volatility assets like $ETH , it’s the valuation denominator that changes first. 🪙
I think the key isn’t the oil price itself, but how long it stays elevated. If oil stays above $100 for the whole month, inflation expectations will be repriced. At that point, whether you chase the rally depends on whether you believe in this chain. 🧮
📌 Oil breaks $110, and the first bill crypto has to pay is the valuation hit.
Here’s a question for you: If oil stays above $100 for the whole month, would you reduce your position or add to it? Let’s talk in the comments.