Bitcoin traders might be paying too much attention to crypto and not enough attention to oil.
Brent crude has surged above $110 as tensions around Iran and the Strait of Hormuz raise concerns about global energy supplies.
If oil stays elevated, inflation could prove harder to bring down. That gives the Fed less room to cut rates and risks keeping liquidity tighter for longer.
My view is that this is one of the biggest external risks facing Bitcoin right now.
We can get bullish setups on the charts, but if energy prices keep climbing and markets start pricing in tighter monetary policy, that can quickly undermine the recovery.
I’m not saying Bitcoin has to fall. But I do think traders need to be careful about getting too bullish while this macro risk remains unresolved.
If oil cools and tensions ease, that could remove a major headwind for risk assets.
If oil keeps climbing, I’d expect volatility to remain elevated.
For me, oil is one of the key things to watch alongside Bitcoin price action over the coming days.
Brent crude has surged above $110 as tensions around Iran and the Strait of Hormuz raise concerns about global energy supplies.
If oil stays elevated, inflation could prove harder to bring down. That gives the Fed less room to cut rates and risks keeping liquidity tighter for longer.
My view is that this is one of the biggest external risks facing Bitcoin right now.
We can get bullish setups on the charts, but if energy prices keep climbing and markets start pricing in tighter monetary policy, that can quickly undermine the recovery.
I’m not saying Bitcoin has to fall. But I do think traders need to be careful about getting too bullish while this macro risk remains unresolved.
If oil cools and tensions ease, that could remove a major headwind for risk assets.
If oil keeps climbing, I’d expect volatility to remain elevated.
For me, oil is one of the key things to watch alongside Bitcoin price action over the coming days.