commoditycycle

UBS’ latest report: the commodities super cycle has started! A perfect storm is forming—electrification, an AI infrastructure spending frenzy, power demand surging, and supply bottlenecks at the same time. This commodity rally isn’t just a temporary move; it’s set to last for years as a major cycle.

Inflation expectations are heating up, and Bitcoin as “digital gold” stands to benefit directly. Demand for AI infrastructure has skyrocketed, which is bullish for AI-related crypto assets. Against the backdrop of the Federal Reserve potentially turning toward easing, the commodities + crypto dual markets could see synchronized gains.

Remember what Jeff Currie said: “Go long and buckle up”! The start of a commodities bull market is often a leading signal for a crypto bull market.

#CommodityCycle #Inflation #Bitcoin #CryptoMarket
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This Is NOT A 1970s-Style Commodity Supercycle

The current inflation scare has two parts:

1. Strait of Hormuz risk

This is a supply shock. If Hormuz opens and shipping normalizes, the panic premium in crude, LNG, freight and insurance can cool quickly.

Hormuz handles nearly 20% of global oil flows, so any disruption creates fear. But fear premium is not the same as a structural supercycle.

2. AI infrastructure demand

This is the structural part.

AI data centres need:
power,
copper,
transformers,
cables,
cooling,
gas backup,
grid expansion.

That demand will not disappear even if oil cools.

So this is not like the 1970s, where oil shock + wage-price spiral + weak central banks created a broad inflation regime.

Today looks more like:

Temporary energy shock + structural power infrastructure boom.

Crude may be tactical.

Copper, grid, transformers, cables and power equipment may be structural.

The real bull market may not be in “all commodities”.
It may be in companies enabling electricity, grids and AI infrastructure.

#CommodityCycle
#AIInfrastructure
#GlobalMacro
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