The 'crack' in the energy market is wider than ever. Bitcoin might feel it.
Rising oil product costs, specifically the 'crack spread' between crude oil and diesel, are threatening to drive inflation higher. This economic pressure, combined with rising bond yields, may create headwinds for Bitcoin despite a weakening U.S. dollar.
Why it matters
The widening gap in energy costs suggests that inflation may remain persistent, impacting both consumer purchasing power and the performance of speculative assets like cryptocurrency.
On Monday, CoinDesk reported that Goldman Sachs was downplaying the chance of the Federal Reserve raising interest rates in September, citing slower inflation and echoing dovish expectations among traders, a potential tailwind for bitcoin BTC $ 64,299.09 .
The first detail is the difference between the price of diesel and the cost of the crude oil used to produce it. The gap, known as the “crack” has surged to a record $102.20 a barrel.
The wars in Iran and Ukraine are disrupting global oil supply and driving the crack wider just as seasonal demand peaks because farmers need fuel to run tractors and harvest crops. That has real implications for inflation on Main Street.
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