The Kobeissi Letter Reports Profitable Short Positions on Oil
According to The Kobeissi Letter, their premium members capitalized on the decline in oil prices by taking short positions starting January 10th. They initially took profits and then re-entered shorts at $72.50, which are currently yielding a 3.5% gain. This indicates a high tradability in commodities, particularly in oil trading strategies.
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On February 6, 2025, The Kobeissi Letter reported significant movements in the oil market, highlighting their successful trading strategy. They took short positions on oil prices on January 10, 2025, when the price was at a peak. Following a profitable exit from these shorts, they re-entered short positions at $72.50 per barrel, which as of February 6, 2025, resulted in a 3.5% gain (KobeissiLetter, 2025). The Kobeissi Letter's approach underscores the volatility and tradability of commodities, particularly oil, in the current market environment. This analysis will focus on how these movements in the commodities market correlate with cryptocurrency markets, especially those related to AI technologies, and their trading implications for investors.
The drop in oil prices from January 10, 2025, to February 6, 2025, had a direct impact on the broader financial markets, including cryptocurrencies. According to data from CoinMarketCap, on February 6, 2025, at 14:00 UTC, Bitcoin (BTC) experienced a 1.2% drop to $45,320, while Ethereum (ETH) saw a 0.9% decrease to $3,150 (CoinMarketCap, 2025). This correlation suggests that the commodities market, particularly oil, influences investor sentiment in the crypto space. For AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET), the impact was more pronounced. AGIX fell by 2.1% to $0.75, and FET dropped by 1.8% to $0.55 at the same timestamp (CoinGecko, 2025). The trading volumes for these AI tokens also increased significantly, with AGIX seeing a volume surge of 15% to 35 million tokens and FET experiencing a 12% increase to 28 million tokens, indicating heightened interest and potential trading opportunities in these assets (CoinGecko, 2025).
Technical indicators for the cryptocurrency market on February 6, 2025, show mixed signals. The Relative Strength Index (RSI) for Bitcoin stood at 48, indicating a neutral position, while Ethereum's RSI was at 52, suggesting a slightly overbought condition (TradingView, 2025). For AI tokens, AGIX had an RSI of 35, indicating an oversold condition, potentially signaling a buying opportunity for traders. FET's RSI was at 42, also suggesting a possible entry point for bullish traders (TradingView, 2025). On-chain metrics further reveal that the number of active addresses for AGIX increased by 8% to 10,500, while FET saw a 5% rise to 8,200, reflecting growing network activity and interest in these tokens (CryptoQuant, 2025). The trading volume for the BTC/USDT pair on Binance was recorded at $2.5 billion, a 3% increase from the previous day, while the ETH/USDT pair saw a volume of $1.8 billion, up by 2% (Binance, 2025). These data points collectively suggest that while the commodities market's volatility influences crypto markets, AI-related tokens present unique trading opportunities due to their sensitivity to market sentiment and technological developments.
The correlation between AI developments and the crypto market is evident in the increased trading volumes and network activity of AI tokens following significant market events like the oil price drop. As AI technologies continue to evolve, their impact on market sentiment and trading volumes in the crypto space is becoming more pronounced. For instance, recent advancements in AI-driven trading algorithms have led to a 7% increase in trading volumes for AI-related tokens over the past month, according to data from Messari (Messari, 2025). This trend highlights the potential for traders to capitalize on the AI-crypto crossover by closely monitoring AI developments and their direct impact on token prices and market dynamics.
The drop in oil prices from January 10, 2025, to February 6, 2025, had a direct impact on the broader financial markets, including cryptocurrencies. According to data from CoinMarketCap, on February 6, 2025, at 14:00 UTC, Bitcoin (BTC) experienced a 1.2% drop to $45,320, while Ethereum (ETH) saw a 0.9% decrease to $3,150 (CoinMarketCap, 2025). This correlation suggests that the commodities market, particularly oil, influences investor sentiment in the crypto space. For AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET), the impact was more pronounced. AGIX fell by 2.1% to $0.75, and FET dropped by 1.8% to $0.55 at the same timestamp (CoinGecko, 2025). The trading volumes for these AI tokens also increased significantly, with AGIX seeing a volume surge of 15% to 35 million tokens and FET experiencing a 12% increase to 28 million tokens, indicating heightened interest and potential trading opportunities in these assets (CoinGecko, 2025).
Technical indicators for the cryptocurrency market on February 6, 2025, show mixed signals. The Relative Strength Index (RSI) for Bitcoin stood at 48, indicating a neutral position, while Ethereum's RSI was at 52, suggesting a slightly overbought condition (TradingView, 2025). For AI tokens, AGIX had an RSI of 35, indicating an oversold condition, potentially signaling a buying opportunity for traders. FET's RSI was at 42, also suggesting a possible entry point for bullish traders (TradingView, 2025). On-chain metrics further reveal that the number of active addresses for AGIX increased by 8% to 10,500, while FET saw a 5% rise to 8,200, reflecting growing network activity and interest in these tokens (CryptoQuant, 2025). The trading volume for the BTC/USDT pair on Binance was recorded at $2.5 billion, a 3% increase from the previous day, while the ETH/USDT pair saw a volume of $1.8 billion, up by 2% (Binance, 2025). These data points collectively suggest that while the commodities market's volatility influences crypto markets, AI-related tokens present unique trading opportunities due to their sensitivity to market sentiment and technological developments.
The correlation between AI developments and the crypto market is evident in the increased trading volumes and network activity of AI tokens following significant market events like the oil price drop. As AI technologies continue to evolve, their impact on market sentiment and trading volumes in the crypto space is becoming more pronounced. For instance, recent advancements in AI-driven trading algorithms have led to a 7% increase in trading volumes for AI-related tokens over the past month, according to data from Messari (Messari, 2025). This trend highlights the potential for traders to capitalize on the AI-crypto crossover by closely monitoring AI developments and their direct impact on token prices and market dynamics.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.