Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
BTC Oil prices are approaching US$110, once again impacting the global market. Brent crude hit $109.97 on Friday, setting a four-month high. At the same time, the U.S. 10-year Treasury yield rose to 4.979%. Currently, the market is closely monitoring the trend of oil prices and the US Consumer Price Index (CPI) data released today.
Why is the price of oil approaching US$110?
Brent crude rose 6% overnight, then fell 0.6% to around US$107. Despite this, its weekly increase remained at around 11%.
Tensions between the United States and Iran have exacerbated market concerns about oil supply disruptions. With restrictions on transportation in the Strait of Hormuz, Iranian-linked Houthi forces took control of the Yemeni port of Moka. Helima Croft of RBC Capital Markets said that if risks widen further, Brent crude could rise to $121.99 during the year.
Why did Treasury yields rise?
Soaring oil prices have revived inflation concerns. Investors worry that rising energy costs will push up prices and force the central bank to maintain tightening monetary policy for longer. The U.S. 10-year Treasury yield rose to 4.9790%, a three-year high, approaching the closely watched 5% mark. The yield on the 30-year treasury bond reached 5.3836%, a 19-year peak. The yield on the 2-year Treasury note also rose to 4.5961%. Markets are currently pricing the probability of the Fed raising interest rates this month at about 70%.
Why is U.S. CPI data important?
The August US CPI data released today is of great significance to the expected direction of interest rates. The market expects core CPI to increase by 0.2% month-on-month. However, the sharp rise in oil prices has caused investors to worry that inflation results may be higher than expected. In addition, producer price index (PPI) data released the previous trading day showed that price pressures have not completely subsided. According to Reuters, today's CPI data may change the balance of the Federal Reserve's interest rate decision next week.
Will the Fed raise interest rates?
Although market pricing suggests a probability of a rate hike of about 70%, Reuters's economist survey presents a different picture. Most economists expect the Fed to leave interest rates unchanged at its September 15 - 16 meeting. Therefore, today's CPI data is not just a set of inflation indicators: if the data exceeds expectations, the possibility of raising interest rates will be further enhanced; if the data is lower, it may weaken the market's current tightening expectations.
How do high interest rates affect Bitcoin?
Rising Treasury yields put pressure on risky assets, including stocks. The Asia-Pacific broad stock index fell 1.5%, while Japan's Nikkei fell 2.2%. Higher interest rates also increase the discount rate used to value companies. As one of the assets affected by changes in global risk appetite, Bitcoin's performance is also worthy of attention. Therefore, the continued rise in oil prices and the strengthening of the Federal Reserve's expectation of raising interest rates have become important developments that need to be closely followed in the cryptocurrency market.
Analysts at JPMorgan Chase expect eight of the nine developed economies to raise interest rates by the end of the year, including the Federal Reserve, the Bank of Japan, four European central banks and the central banks of Australia and New Zealand. Analysts pointed out that while current tightening measures are limited, strong growth, persistent core inflation and high commodity prices increase the risk of further interest rate hikes.
