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Bitcoin faces headwinds as diesel crack spreads hit record levels

Oil product prices are outpacing crude, with the diesel crack spread rising to a record $102.2 a barrel, a setup that could feed into inflation concerns and weigh on risk assets.

Reported · Written up by our desk · Market Structure

CoinDesk’s “Daybook” highlighted that a major dislocation in energy markets is widening, with the diesel price compared to the crude used to produce it, the “crack” spread, climbing to a record $102.2 a barrel.

The outlet linked the jump to disruptions in global oil supply tied to wars involving Iran and Ukraine and to seasonal demand that peaks as harvesting ramps up and farmers need diesel for tractors, while additional heating and shipping needs may follow.

CoinDesk said the knock-on effect could be inflationary, quoting the view that food could become more expensive and warning that diesel is central to agriculture, shipping, and even winter heating oil.

Against that backdrop, the newsletter noted that even if crude itself is preparing for a bounce after a four-month bearish run, higher Treasury and other advanced-economy bond yields could increase the opportunity cost of holding assets like bitcoin, even as it pointed to a weaker U.S. dollar as a near-term tailwind.

Latest closeWTI crude $82.40 ▲1.4%|Bitcoin $64,316.36 ▼0.3%

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