Crypto Takes a Hit as Oil Prices Surge and Yields Near 5%
Bitcoin's price has slid to around $77,700 as investors reduce exposure to risk assets ahead of another major US inflation test. The bigger story, however, is increasingly outside crypto.
Brent crude has climbed above $108 per barrel, up roughly 13% this week, due to escalating tensions in the Middle East disrupting major shipping routes. Meanwhile, the U.S. 10-year Treasury yield is approaching the psychologically important 5% level, while the dollar remains firm.
Markets now price a 70% probability of another Fed rate hike next week, putting pressure on duration-sensitive assets. The S&P 500 fell 0.58%, and the Nasdaq lost 0.65% on Thursday, with NVIDIA dropping 2.3% and Micron Technology falling 4.7%. However, Apple bucked the trend with a 3.6% gain following its latest product launch.
AI fundamentals remain strong, supported by demand across Broadcom, Nvidia, and the broader data-center supply chain. Qualcomm's recent AI-chip partnership with Amazon highlights how quickly competition for AI infrastructure is broadening.