Brent crude jumped to $106.83 a barrel after U.S. strikes on Iranian oil tankers, while August producer price data pushed the odds of a Federal Reserve rate increase next week to 64%. Crypto sold off broadly as Treasury yields surged, with Bitcoin down 2.1% to $77,120 and 103 of the 125 largest tokens trading lower.
Almost every large crypto token fell through Thursday's U.S. session as an oil shock drove long-dated Treasury yields to multi-year highs and traders raised the odds of a Fed increase next week. Bitcoin traded at $77,120, down 2.1% over 24 hours and 5.1% over seven days, after swinging between $76,748 and $78,774. Ether fell 1.9% on the day to $2,448.88, while XRP dropped 4.8% to $1.35, Solana declined 3.6% to $99.69 and BNB fell 4.4% to $708.37. Total crypto market value stood at $2.64 trillion on $94.2 billion of volume, with bitcoin dominance at 58.5%.
Five tankers and $106 crude
Brent crude traded at $106.83 a barrel on Thursday afternoon, up 5.6% on the day and its highest level since May 19. The contract has risen 11.7% since Sept. 2, when it settled at $95.63. U.S. Central Command said its forces destroyed five Iranian crude oil carriers on Sept. 8, after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles twice over the prior two days. The release names the M/T Kaviz, M/T Charminar, M/T Horizon 1, M/T Riesco and M/T Derya, placing four strikes in the Gulf of Oman and one near Kharg Island.
Producer prices move the curve
The Bureau of Labor Statistics reported that producer prices for final demand rose 0.4% in August, up from 0.1% in July and a 0.1% decline in June, with final demand prices up 5.4% over 12 months. Core prices, excluding foods, energy and trade services, rose 0.3% on the month and 4.7% over the year. Traders raised the odds of a quarter-point September rate hike from 52.5% at 8 a.m. ET to 63.5% by early afternoon, after the report crossed the wires at 8:30 a.m. The 10-year Treasury yield reached 4.92% on Thursday, its highest since Oct. 25, 2023, while the 30-year reached 5.34%, above every daily close of the past five years. According to Thadeu Dos Santos, regional director at brokerage Infinox: "The figures reinforced concerns that inflation remains persistent", given elevated crude oil prices and a labour market that has proved more robust than anticipated.
Breadth goes one way
One hundred and three of the 125 largest non-stablecoin tokens fell over 24 hours, 21 rose and one was unchanged, in a snapshot taken at 1:10 p.m. ET. Equities and gold also fell: the S&P 500 traded at 7,606, down 0.4% from Wednesday's close, the Nasdaq Composite fell 0.3% to 26,163, and gold dropped 1.3% to $4,405 an ounce. U.S. spot bitcoin ETFs recorded $120.2 million of outflows on Wednesday after $46.6 million on Tuesday, reversing $174.6 million of inflows on Sept. 4 and $730.8 million on Sept. 3.
Source: The Defiant
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