US President Donald Trump, who attended the NATO Leaders Summit in Ankara, hosted by Turkey for the first time in 22 years, made important statements regarding Iran.
At this point, Trump stated that the ceasefire with Iran had ended, thereby reigniting geopolitical tensions in the Middle East.
Brent oil prices surged by more than 10% following renewed tensions between the US and Iran, drawing investor attention back to energy markets. Meanwhile, Bitcoin fell from its early week high of $64,000 to around $62,900.
According to a CryptoQuant analyst, Bitcoin could face further downward pressure if oil prices continue to rise.
At this point, Darkfost, a CryptoQuant analyst who analyzed the historical relationship between Bitcoin and oil, notes that Brent oil and Bitcoin show an inverse relationship.
The analyst notes that when Brent oil prices trade above their 365-day moving average, this could signal the start of a strong upward trend. In context, higher oil prices generally signify rising inflation, slower economic growth, and tighter financial conditions, which reduces demand for risky assets like Bitcoin.
In conclusion, the analyst stated that oil and BTC have an inverse correlation, noting that when oil prices rise, investors’ risk appetite decreases, which puts pressure on risky assets like Bitcoin.
The analyst noted that the relationship between oil and BTC is not new, observing that Bitcoin typically struggles when oil enters a strong upward trend.
“When Brent prices start rising again, it signals a slowdown in Bitcoin’s bull trend.”
Conversely, when Brent oil prices fall, investors anticipate a more favorable economic period for risk-taking, which positively impacts risk markets and Bitcoin.
