Oil Surge Fails to Dent Cryptocurrency Markets Amid Fed Rate Hike Expectations
Cryptocurrency markets have remained resilient in the face of global market volatility caused by rising crude oil prices. The surge in oil prices has led to increased expectations for a Federal Reserve rate hike, but this has not dented cryptocurrency sentiment.
The Brent crude oil futures contract for November settlement is currently trading at $101.27, up 3.4% from its previous close of $97.92. WTI Crude oil for October settlement is also up 3.4% on an overnight basis to $96.20. This price surge has impacted expectations for a Federal Reserve rate hike, with the CME FedWatch tool indicating a 60.4% chance of a rate increase by September 16.
Cryptocurrency markets have been boosted by the U.S. Treasury's announcements regarding bond buybacks, which are expected to support market sentiment. Long-dated thirty-year bonds have declined 0.34% overnight, while ten-year bonds have edged down 0.02%. However, yields on the shorter end of the curve have spiked, with five-year bond yields rising 0.13% and two-year bond yields adding 0.14%.