Summary
- Binance Research said the uptrend in international oil prices following the Iran situation could have a positive impact on Bitcoin (BTC).
- It noted that if oil prices remain above $110 for an extended period, pressure could increase on the U.S. Federal Reserve (Fed) to pivot monetary policy.
- It analyzed that the next 90 days will be a key period for gauging whether Bitcoin reclaims the digital gold narrative from behaving like a risk asset such as tech stocks.
Forecast Trend Report by Period
Global crypto exchange Binance has released an analysis suggesting that the recent uptrend in international oil prices, stemming from fallout from the Iran situation, could have a positive impact on Bitcoin (BTC).
Binance Research, Binance’s research arm, said on the 4th (local time) via its official X account that “the key variable for Bitcoin is not oil prices per se, but how long they remain above $110.” Binance Research added that “the volume of crude oil passing through the Strait of Hormuz is currently about 4 million barrels per day, sharply down from normal levels,” and said that “if oil prices stay above $110, pressure could build on the U.S. Federal Reserve (Fed) to pivot its monetary policy.”
Binance Research said the oil-price uptrend could trigger a chain reaction. “Rising oil prices can feed into higher inflation, shift real interest rates, and change the market narrative,” it said, adding that “the next 90 days will be an important period in determining whether Bitcoin continues to move like a risk asset such as tech stocks or reclaims the ‘digital gold’ narrative.”
Meanwhile, as of 4:56 p.m. on the day, Bitcoin was trading at $69,314.33 on CoinMarketCap, up 1.65% from the previous day. That is up 6.64% compared with a week earlier.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
