Key Takeaway:
Bitcoin (Btc) is generally not considered a reliable investment in times of geopolitical uncertainty, especially if oil prices have emerged in response to the increase in global tension. However, historical data suggest that such moments often show compelling purchase opportunities for entrepreneurs who are willing to achieve market dislocations.
Oil spikes often aligned with sharp, temporary Bitcoin price correction
In front of approaching conflict Or instability, investors generally revolve around the government’s short-term debt and cash, favors safety in volatility. However, Bitcoin has a history that will be in the week after the sudden flow of oil prices, such as the recent rally up to $ 77 per barrel on Friday.
The 15-minute price chart review shows an opposite relationship between Bitcoin and oil. As WTI crude 19% increased between Wednesday and Friday, Bitcoin refused from $ 110,200 to $ 102,800. This pattern is aligned with the existing view of bitcoin as a risk-on asset, not a Defensive fence. However, a wider time frame offers different views.
In the long run, the data does not show the same relationship between bitcoin and oil prices, which is related to change dramatically. However, the stages of extreme appreciation for oil prices are in conjunction with the sharp Bitcoin correction – three times in the last year. Each example was followed by a rebound on the price of Bitcoin, with gains from 16% to 24% within eight days of initial collapse.
In the latest example, on January 15, 2025, the oil went up to $ 80.50 from $ 72.50 six days ago. The spike coincides with a Bitcoin fall at $ 89,300 on January 13, followed by a 22% rally up to $ 109,300 on January 20. The move came after the United States imposed sanctions on the Russian oil sector, as the US crude inventory refused eight consecutive weeks.
Earlier, on October 8, 2024, oil prices jumped at $ 77.50 from $ 68.00 a week before. Bitcoin first corrected $ 58,900 on October 10 but then advanced 16% in the following eight days. The Rally up to $ 68,960 Rewards the entrepreneurs who raised the volatility Which is the terrorist attacks of October 7 in the Middle East.
Related: Panic or opportunity? What tells Crypto Capitulation to smart investors
A similar pattern took place on August 13, 2024, when the oil rose to $ 80 from $ 74 after Libya temporarily closed the main oil fields, which was reported due to the mobilization of the armed groups. Bitcoin fell to $ 56,150 on August 15 but rebounded 16% within days, reaching $ 65,000 on August 23.
While no guarantee the trend will continue, oil prices will rise again five months high. Historical data suggests that the current Bitcoin level close to $ 102,800 may show another attractive -attract entry, which potentially targets a 16% gain to $ 119,200 on June 21.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
