Oil Leaves Bitcoin and Gold Behind Ahead of Wednesday's Fed Decision

Crude oil prices jumped on Monday, while major crypto and metal assets declined, highlighting a divergence in market drivers ahead of the Federal Reserve’s upcoming rate decision.

Oil Gains on Supply Concerns

Brent crude increased 2.75% to $107.48 per barrel and West Texas Intermediate rose 2.51% to $102.56 per barrel. The rally follows a supply shock after Saudi Arabia’s East‑West pipeline was shut down due to drone damage from Iraq. The outage could affect up to 4% of global oil supply. Additional pressure came from recent Houthi strikes in the region, including an attack on a vessel in the Strait of Hormuz and activity around Perim Island, which controls the Bab el‑Mandeb corridor that carries 4%‑5% of global supply.

Crypto and Metals Slide

Bitcoin (BTC) traded near $76,718 after a 4.4% weekly decline, and the total cryptocurrency market cap fell 4.32% to $2.62 trillion. Ethereum (ETH) slipped 1.79% to $2,478.43. Gold eased 0.22% to $4,340.58, silver dropped 0.25% to $64.11, and copper fell 1.08% to $6.40 per pound.

Fed Rate Expectations Drive Divergence

Hotter‑than‑expected U.S. inflation data has increased expectations that the Fed will raise its policy rate range to 3.75%‑4.00%. Market pricing for a hike rose to 86.3% from 59.4% a week earlier. This shift is weighing on risk assets such as crypto and metals, while oil remains driven by supply‑side headlines.

Outlook

The Fed’s decision on Wednesday will clarify whether the split between oil’s supply narrative and the Fed‑focused pressure on crypto and metals persists.