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Coinsori

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  3. Are The Rising Oil Prices Bullish Or Bearish For The Bitcoin Price?

Ali naraščajoče cene nafte vplivajo pozitivno ali negativno na ceno Bitcoina?

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  • 라 Nedosegljiv
    라 Nedosegljiv
    라온
    wrote Zadnje urejanje:
    #1

    The ongoing tensions in the Middle East continue to put immense pressure on Bitcoin and other risk assets. As investor sentiments turn increasingly cautious, analysts are weighing the potential impact of rising oil prices on Bitcoin. The overall outlook is not looking good, with projections suggesting further downside for the leading cryptocurrency. A clearer path to recovery may only appear if regional tensions ease.

    Surging Oil Prices Could See Bitcoin Crash Harder

    Market analysts have shared their thoughts and concerns with The Block about the ongoing US-Iran war and its impact on financial and crypto markets. Rachel Lucas, a crypto analyst at BTC Markets, has emphasized that the Bitcoin price continues to fluctuate amid new developments in the Middle East conflict.

    Lucas noted that Bitcoin has had a volatile week, rising to $72,000 as investors hoped for a diplomatic resolution to the ongoing war. He noted that these gains were quickly reversed as optimism faded and concerns over oil supply resurfaced. This, in turn, triggered a “classic risk-off unwind,” in which investors pulled back from risky assets like Bitcoin and moved to safer investments amid fear.

    The analyst also explained that the current situation in the Strait of Hormuz is fueling concerns about inflation. These fears make it unlikely that the Federal Reserve will lower rates anytime soon, limiting opportunities for economic relief. Consequently, uncertainty and tighter financial conditions are adding further pressure on the crypto market, contributing to the recent decline across major assets.

    Expressing similar concerns, market expert Jeff Mei has taken a bearish stance on Bitcoin amid persistent tensions in the Middle East. The analyst stated that oil prices will likely remain elevated, which could slow economic growth in the months ahead. According to Mei, the combination of rising energy costs and weaker economic conditions means that crypto prices still have lots of room to decline. He projected that Bitcoin could even face another price crash to $60,000 before any sustained recovery.

    Notably, most bearish forecasts for Bitcoin clustered around the $60,000 level, suggesting that experts may see this as Bitcoin’s final price bottom. Analysts at Bernstein have also confirmed this price floor ahead of its $150,000 projected surge in the next bull cycle.

    Retail Investors Remain “Fearful”

    Lucas has also emphasized that retail investors are currently showing signs of fear, with many either hedging their positions or waiting on the sidelines for the market to stabilize and show clear direction. Meanwhile, the Bitcoin Fear and Greed Index reflects this hesitation, as broader market sentiment stays neutral.

    At the same time, the crypto Fear and Greed Index shows that the entire market is in extreme fear territory. Major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin have continued to decline, further eroding investors’ confidence.
    source: https://www.tradingview.com/news/newsbtc:b87417a80094b:0-are-the-rising-oil-prices-bullish-or-bearish-for-the-bitcoin-price/

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