Middle East Truce Uncertainty Erases Crypto Gains

Overall cryptocurrency market capitalization declined 1.4 percent in the past 24 hours to $2.41 trillion. Long positions were liquidated for $164 million as market sentiment dampened. This shift follows uncertainty over the U.S.-Iran ceasefire and a spike in crude oil prices. Brent Oil Futures for June settlement rallied 3.9 percent to $98.41, while West Texas Intermediate (WTI) Crude Oil Futures for May settlement jumped 6.5 percent overnight to $100.52. FOMC participants noted that measures of near-term inflation expectations had risen in recent weeks, reflecting this rise in oil prices. These participants expect higher oil prices to increase inflation in the near term and delay the anticipated decline toward the Committee's 2 percent objective. This combination of oil price volatility and inflation expectations weighed on sentiment, contributing to the decline in market capitalization.