Brent crude’s 7% plunge eases inflation concerns, lifting equities and crypto while Fed rate hike odds dip to 30.5%.
Bitcoin steadied near $65,200 as a 7% drop in Brent crude to $87 eased inflation fears, supporting risk assets ahead of the Federal Reserve’s rate decision Wednesday. The pause in U.S.-Iran hostilities over the Strait of Hormuz drove the oil decline, reducing pressure on equities and digital assets.
Fed rate hike probabilities fell to 30.5% from 37.4% Friday, per CME Group data, as inflation expectations moderated. DeFi tokens led gains, with AAVE and LDO rising over 9%, while PUMP’s market cap surged toward $800 million from $570 million in two weeks.
Nasdaq 100 and S&P 500 futures rose 1.36% and 0.80%, respectively, while gold and silver advanced. Bitcoin’s slight dip to $65,200 followed a peak at $65,600 earlier in the session.