Brent crude fell over 2% to $87.07 per barrel, supporting stock gains as oil-sensitive sectors rallied. The macro tailwind didn't translate to crypto gains, signaling diverging market narratives.
Crypto traders grapple with persistent uncertainty in the Strait of Hormuz and mixed inflation signals. Softer inflation data has lifted traditional stocks and bonds, drawing capital away from risk assets like crypto.
Markets now price in reduced odds of a September Fed rate increase, boosting equity valuations. However, crypto hasn't benefited from this dovish turn, suggesting broader risk-off sentiment among digital asset traders.
Bitcoin support lies around $62,000 with resistance at $65,000. Ethereum faces support near $1,850. A sustained break below support levels could trigger further liquidations in overleveraged positions.
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