Oil and Cryptocurrencies in the Spotlight: Sustained Gains Amid Market Volatility

Global markets are experiencing heightened activity,
with oil prices achieving gains for the fourth consecutive week due to U.S. sanctions,
while cryptocurrencies continue their upward trend amid expectations of supportive political changes.

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Oil
Bitcoin

Oil

U.S. Sanctions Intensify Market Pressures

Oil prices have continued their upward streak for the fourth consecutive week, marking the longest rally since July.
This surge is fueled by growing concerns over global supply disruptions caused by U.S. sanctions on Russian oil.
West Texas Intermediate (WTI) crude rose by about 2% this week, despite dipping below $78 per barrel on Friday.

The Biden administration imposed strict sanctions on 183 Russian oil tankers,
disrupting markets and significantly increasing shipping costs.
Meanwhile, countries like China and India are seeking alternative sources of oil.
This shift comes at a time when the market is already tight, driven by cold winter weather in the Northern Hemisphere,
which has boosted fuel demand.

Diverging Future Outlooks

As the inauguration of President-elect Donald Trump approaches, markets are reassessing their expectations for future policies.
Reports suggest a possible easing of U.S. sanctions to facilitate a deal between Russia and Ukraine.
However, Trump has also threatened to impose tariffs on Canadian oil imports,
adding another layer of complexity to the market.

At the same time, China, the world’s largest oil importer, is grappling with mixed economic signals.
Despite meeting its government-set growth targets last year,
the transition to electric vehicles led to a 1.6% decline in oil refining volumes.
Additionally, ongoing U.S. trade tensions may further pressure China’s economy.

Bitcoin

Bitcoin Nears Record Levels

Cryptocurrencies, led by Bitcoin, continue to post significant gains. Bitcoin’s price rose by 4.9%, reaching $105,076.
This surge comes amid expectations that Donald Trump’s new administration will adopt supportive policies for cryptocurrencies,
fueling optimism in the market.

Since the beginning of the week, Bitcoin’s value has has increased by approximately 12%,
marking its largest weekly gain since November.
Experts believe the market is pricing in potential pro-crypto policies from the upcoming U.S. administration,
which could promote wider adoption on a national scale.

Factors Supporting Digital Asset Growth

Additional market support came from reassuring inflation data in the United States,
which bolstered hopes for further interest rate cuts by the Federal Reserve.
Meanwhile, XRP, linked to Ripple Labs, hit an all-time high,
fueled by expectations of a resolution in its long-standing dispute with the U.S. Securities and Exchange Commission.

Traders are betting on higher volatility by the end of January,
indicating that the cryptocurrency market may see more activity as the U.S. presidential inauguration approaches.

Oil and Cryptocurrencies in the Spotlight

Oil and Cryptocurrencies in the Spotlight

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