Energy Market 'Fracture Spread' Hits Record Expansion, Bitcoin May Face New Pressure

BlockBeats News, August 18th, as crude oil prices fell, refined oil prices continued to rise, and the "Crack Spread" between U.S. diesel and crude oil has risen to $102.20 per barrel, reaching a record high.

Impacted by the Iran-Ukraine conflict disrupting global energy supply, diesel supply has tightened. Additionally, during the current agricultural harvest season, strong demand for fuel for tractors and other agricultural equipment has further driven up diesel prices, potentially transmitting inflation through food, transportation, and heating costs.

At the same time, WTI crude oil prices have broken through the downtrend line formed since the April high, indicating that the four-month downward trend may be coming to an end. If oil prices continue to rise, market inflation expectations may reignite.

The overlay of energy prices and inflation risks with government debt concerns is driving up U.S. Treasury and other developed economy bond yields, increasing the opportunity cost of holding risk assets such as Bitcoin, potentially limiting BTC's further upside.

However, the weakening U.S. dollar still provides some support for Bitcoin. The U.S. Dollar Index fell to 99.29 on Monday, hitting a two-and-a-half-month low and breaking below the previous uptrend line. Currently, Bitcoin is being influenced by multiple factors such as oil prices, bond yields, and the U.S. dollar trend, presenting a visibly divergent macro environment.