BTC Bounces Around As Oil Markets Face Disruption

Bitcoin (BTC) experienced a drop to a new monthly low below $40,500 but rebounded above $42,000 later. Meanwhile, various altcoins, except for LINK which surged by about 5%, showed minimal movement. The total crypto market cap fell by about $10 billion overnight but remains slightly above $1.6 trillion on CMC. 

Volatility Continues

BTC had a volatile week, initially surpassing $49,000 with the introduction of multiple spot BTC ETFs to the US markets, but later plummeting by over $7,000 in a sell the news event. After reaching $43,000 over the weekend, Bitcoin faced another decline, dropping below $41,000 and briefly hitting $40,400, a level not seen in over a month. Despite a brief recovery to over $42,000, negative sentiment persisted, bringing BTC back to $41,500.

Chainlink (LINK) stands out among major alts with a 5% increase, trading above $16. Cardano and Uniswap also saw gains, while Avalanche, Solana, and MATIC experienced losses, according to CoinGecko.

Other Markets

Federal Reserve Chairman Jerome Powell and colleagues face pressure for interest-rate cuts amid concerns about a potential moderation in US economic growth in Q4. Investors anticipate a 2% increase in GDP, following a 4.9% third-quarter advance. Despite debates on monetary policy, traders are focused on a market testing earnings-valuation boundaries, setting new records.

Elsewhere, the oil market is bracing for a weeks-long shipping disruption in the southern Red Sea, where Houthi militants have been attacking merchant vessels for months in response to the war in Gaza.

Charters of tankers carrying crude and fuels, which can be booked up to a month in advance for some vessels, show that an increasing number of vessels are being hired for routes that avoid the danger zone, according to shipowners, brokers, and traders.