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Analysis: Brent crude oil continues to stay above 100 USD, while macroeconomic pressure may limit Bitcoin's upside
BlockBeats reports that October 23, CryptoQuant analyst Darkfost posted that, due to continued tensions in the Gulf region and Ukraine's intensified attacks on Russian oil refineries, Brent crude prices remain above 100 USD/barrel. Rising oil prices are transmitting through the global economy, driving up production, service, and commodity costs, allowing inflationary pressure to further permeate the economic system and potentially increasing the risk of an economic slowdown, thereby restricting market liquidity, especially funds flowing into high-risk assets such as Bitcoin.
Darkfost noted that, from a long-term perspective, when Brent crude remains above its annual average and enters a strong upward trend,BTC often experiences slower growth; conversely, when oil prices fall sharply,BTC is more likely to see a recovery. However, he emphasized that this does not mean there is a simple direct causal relationship between oil prices and BTC; what truly affects risk assets is the macroeconomic environment accompanying high oil prices. This year,July oil prices briefly fell,BTC immediately gained an opportunity to rise, but Brent crude has since rebounded significantly. Although funds may still rotate among different markets, driving BTC to continue rising, the current macroeconomic environment is unfavorable for sustained inflows of new liquidity into the market.
Original link https://m.theblockbeats.info/flash/373374