I just came across something interesting a few hours ago, and figured we could chat about it here instead of just keeping my thoughts to myself. Honestly, I think most news is just rubbish and doesn’t really have an impact on bitcoin’s price, especially with crude oil going up.
Don’t jump to conclusions yet, though. Check out the news first through the quote link. But honestly, it’s better to analyze the market on your own before you start posting opinions.
For me, if bitcoin’s price drops, it’s definitely not because oil prices are going up. And just because oil prices might drop doesn’t guarantee bitcoin will follow that trend.
What would happen to bitcoin if oil hits $180 a barrel?
19 replies 230 views
That's rightit doesn't necessarily have to be that way, but if oil prices rise that much, there will be a general increase in prices, which means there will be less money available for investment, and this is likely to affect the price of Bitcoin. But its also possible that investors will turn to Bitcoin as a safe haven, causing it to outperform other assets. In fact, since the conflict in Iran began, it has outperformed both gold and the U.S. stock market.
This is what I think about it, as the increase in the price of crude oil will lead to inflation which will make the price of goods and services to increase, and that means declining fiat price in each countries. This supposed to have good effect later on bitcoin and other valued assets like gold but I do not know if gold still fall under overbought asset, bitcoin is not overbought for now.
ravenhq414Newbie
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#4Jul 8, 2023, 04:55 AM
I think anyone can throw random price for whatever the oil price maybe if it's for the price of Bitcoin. We're all speculating and we don't know how long this war will take place and how high the oil will be priced in. As for most the miners, majority of them I think are using green energy and so they won't mostly be affected if they rely on the solar for their energy to generate the mining farms that they have. But for those who are using crude oil or diesel for their operations, that might stop them temporarily until they find a better source and still make it profitable.
orbit_stackMember
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#5Jul 8, 2023, 08:05 AM
I hate when articles make vague claims without carefully explaining why they said what they claim. The article didn't say why Bitcoin will get to $51k if oil prices hit $180. The closest it came to explaining it is saying that increased oil prices will lead to inflation. To be fair, they are right about that. Oil prices don't even need to get to $180 a barrel for the inflation to be significantly higher, but it might be severe at that point.
Yes, there will be more inflation at $180 a barrel, but Bitcoin can go either way. Investors and even retailers may go for something that is inflation-proof, and that will mean more demand for Bitcoin, which means an increased price of Bitcoin.
The inflation can also lead to investors looking for more money, and that might lead to the selling of their assets like Bitcoin to finance their businesses, which might drop the Bitcoin price. So, it could go either way, but the second scenario looks less likely in my opinion.
I remember we talked about how a war would affect Bitcoin price negatively, and the war actually happened, and it didn't affect the price that negatively, so we will never really be sure how investors will react to certain events.
Bitcoin won't necessarily reach a new ATL when oil hits $180 if large investors have already shifted liquidity away from higher-risk assets, I mean, not just Bitcoin. Maybe it will when it's just $140 or $150, who knows.
Retail investors rarely make the same "smart" decision and simply hold onto Bitcoin, but their accumulated capital is large enough to withstand higher Bitcoin prices.
It's easy for the media to mention such a price, and if it turns out to be true, it's not entirely due to rising oil prices, but rather to Bitcoin's bearish trend.
I'm convinced that Bitcoin's price movement isn't entirely due to global events, there are other drivers, and they're using the media.
Bitcoin's price may fall because traders will be more reluctant to enter the market due to fears about the uncertain future of the global economy due to war.
I agree with what you said in your last paragraph that Bitcoin price does not depend on the price of oil, they have no direct correlation. Even in the movements of funds, there have not been any literature of money moving from Bitcoin to oil and vice versa as we see on the currency market and even stock markets. This is simply because there are different market participants operating in the energy and cryptocurrency market. If oil rises so high, Bitcoin will have to decide its future independent of that.
If oil hits $180 per barrel of crude, I will be selling all my energy stocks and shorting the hell out of it.
I doubt it happens
I feel like in another week or two it will be clear that the worst is behind us and we will begin to see the winners emerge from this event.
As long as it doesnt spread to severe job losses and foreclosures, everything will be fine. However, keep an eye open. If it does spread to the wider economy and we have a 2008 situation on our hands, youll want to be nimble.
Bitcoin price and performance in the market are not relative to how the performance and price of the crude oil is in the market. There is something very clear and obvious about the Bitcoin market since the war broke out in the Middle East, we have not really seen anything significant that has triggered the price of bitcoin to be tempted by the war unlike what weve seen from crude oil. Even for the fact that crude oil is being anticipated to reach $180 per barrel, it may not still have a significant impact in the Bitcoin market and we may continue to trend as normal market and not a forced or triggered one by external factors.
orbit_stackMember
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#11Jul 14, 2023, 12:24 PM
Of course. Global events is just one thing that affects the market. Exchange crash, new policies and approval of certain things like the ETF affect the price. Anticipation of the halving and anticipation of the bearish trend also affect the price. So global events are not the only thing that affect Bitcoin's price.
Will they? Because we have seen more uncertain times, yet they were not reluctant to enter the market. I don't think the war will stop traders from entering the market. They deal with uncertainty all the time, so its not too different this time.
I don't think traders have that much significance in this. The big investors and retail investors are the ones that do. If they don't sell, the price will not drop.
hodlerpro314Newbie
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#12Jul 14, 2023, 01:08 PM
Worst case scenario is that, alot of shouting down of major supply will have to happen before price of oil can get to $180, I doubt if that can happen, us not visible and the crisis won't escalate to that extent.
Although in the event of border closer's, then alternative riots will be sort for, Bitcoin become the center currency for trades and demand increase you know the rest that will follow from there.
bearlab612Newbie
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#13Jul 15, 2023, 08:37 PM
180 oil opens a ton of high cost oil such as tar sands in Canada. Many other projects, alot of supply is not worth it with cheap oil price but investment is diverted when the world demands via price that we address the market requirement for energy.
You could even call this bullish, alot of activity and action potential becomes possible then probable the longer the failure occurs. 180 is enough to end production lines, empoverish entire nations who cannot afford the basics. The arab states themselves are in high risk situations across desert areas, they use giant amounts of energy to turn salt water drinkable.
At 180 the world changes by force, that violence of action will be taken as negative by those who do not benefit and sure Bitcoin is high energy use (also portable not fixed as above) , however its an adaptable protocol. I presume it does bring in a lower price perhaps with a heavy skew to those miners who are enabled by solar or hydro power; their advantage grows.
To some this upset is opportunity arrived.
One thing to note is that if inflation rises sharply again, the Fed and other central bank may continue to implement quantitative tightening policies, raising interest rates. That would reduce market liquidity, and that is not a positive sign for the financial markets in the short term.
So, I think if oil prices rise too high and cause inflation to skyrocket again. Bitcoin and other risk markets are more likely to react negatively in the short term than to rise in price.
just_cipherNewbie
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#15Jul 16, 2023, 02:56 AM
Oil and bitcoin are not directly correlated, but both are part of and are affected by the economy. If oil prices rise to $180 or $200 as expert predict. That would certainly lead to inflation and damage the economy, or worse a recession. Meanwhile, Bitcoin's volatility depend on cash flow and investor sentiment, and investors react to macroeconomic fluctuation
It would be a mistake to assume that rising oil prices will not affect bitcoin, but we still do not know whether that impact will be positive or negative.
Nothing will happen because so far the only one that seems to be affected is gold because its already way over valued and I bet some people figured out that maybe the party has ended.
Bitcoin on the other hand still pretty nonchalant about the overall war escalation, maybe because its already so undervalued anyway.
Gold has now undergone a correction, which is to be expected given the sharp rise it has seen over the past two years. This is especially true when we consider that gold is an asset that does not typically exhibit such volatility. Ive been keeping a close eye on how Bitcoin is performing compared to gold. Well have to see how things play out this year, as Bitcoin has outperformed gold at least since the start of the warunlike what has happened in recent years. If Bitcoin recovers and outperforms gold in terms of returns, we can view golds rise as an anomaly and consider the idea that Bitcoin is digital goldand therefore superior for many reasons. If the opposite happens, that narrative will fade away. And even more so when considering the supply and demand for tokenized gold.
wolfone615Senior Member
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#18Jul 17, 2023, 01:53 PM
If higher oil prices are leading to expensive bitcoin mining then we will obviously have impact on bitcoin market. I do not have any data on what would be the threshold level for current equilibrium to be maintained against higher oil price and if that level is $180 means I guess there are at the verge of getting broken in next couple of weeks if no good news from the middle east. Oil prices are base for many products world wide other than petrol and gas. So, 3x higher price will have definite impact on our economy and of course on bitcoin market due to hidden dependencies.
If at least 25% of bitcoin mining is running on petrol/diesel then higher crude oil prices lead to exit of few miners and then lesser miner than current means higher tx fees which may lead to bull trend in bitcoin market. There were times where bitcoin transactions were too costly yet no bull action or late entry of bulls. So, I guess there would not be any immediate consequence of oil price to bitcoin market instantly but delayed responses are highly possible.
block_vectorMember
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#19Jul 17, 2023, 06:30 PM
I can only guess Bitcoin is most likely doing side ways or dumping when the price of oil goes up so hard. I know the pump oil can lead into the inflation, but in most cases, people are taking such opportunity to hedging across crypto and commodities. So i don't think there will be immediate impact to the price of bitcoin.
The fact that oil has become second most traded market in hyperliquid. It's telling us people are always jumping from crypto to commodities when the price is rising for the hedging purpose.
It's possible. US is having hard time in negotiating with Iran. And as Iran has said, we should brace ourselves for a $200 per barrel of oil.
With your stocks from the energy companies where you've invested, you can't miss that profiting by that time.
We can't be sure, like today Trump has said something about a good news about negotiation and the price of Bitcoin goes back to $71k in few minutes.
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