The price of Bitcoin (BTC) remains at just over $70,000, a region that has served as technical support amid instability in the Middle East and distortions in oil prices.
digital currency It traded above $70,390 on March 12 of this year, which corresponds to a 3.1% decline over the past week.. He remains grateful, but15% From the lowest amount recorded on February 6th of $60,074.
US government announces major intervention in oil reserves while digital assets seek to strengthen that trend Stopping the escalation of global inflation that threatens financial market liquidity.
US Energy Secretary Chris Wright confirmed the Donald Trump administration’s plan yesterday, March 11th. Release 172 million barrels of oil of strategic reserves.
President Trump is using the initiative to avoid further spikes in oil prices as the war with Iran disrupts global shipping through the Strait of Hormuz. This geographical route connects the Persian Gulf and the Gulf of Oman, One of the most important energy routes of the planet. About 20% of the world’s oil and a significant portion of its liquefied natural gas circulate there.
Traffic through this route has been blocked since March 3, impacting maritime trade and energy and oil exports in the region.
How energy affects the Bitcoin market
Oil prices have soared due to the war, exceeding $100 per barrel for the first time in more than five years. Its value on March 8 was very close to $120. Currently, the price of Brent crude oil is trading at $101. Serves as the most accurate indicator of how expensive or difficult it is to transport oil by sea.
The US government’s efforts to stabilize oil prices aim to reduce the threat of an inflationary spiral. It could ultimately open the door to increased liquidity in the financial system.as reported by CriptoNoticias.
The relationship between energy and monetary policy is direct. A sustained increase in oil prices will increase the cost of transportation and production of goods. This fact would force the US Federal Reserve (FED) to maintain high interest rates for an extended period of time.
This restricted monetary environment is usually unfavorable for the price of digital currencies. However, if the reserve release strategy works, the pressure on issuers will be reduced and Overall investor sentiment will improve.
There are growing calls for caution among investors.
Analyst CoinDream, a member of the CryptoQuant community, offered a cautious view on Bitcoin’s current movements. He said that he does not yet believe that near-term demand for Bitcoin is “strong enough to support a clear reversal of the current trend.”
Coindream further elaborated on the technical analysis, noting that at this stage, “the market still appears to be more of a resistance test than a true bullish trend reversal.” In his view, market participants “need to prioritize risk management in the face of external volatility.”
of Caution is still more important than aggression in this marketsaid the analyst. This explains the behavior of large holders in the current macroeconomic situation.
The effectiveness of the US oil release plan will be a determining factor in determining whether the North American powerhouse’s monetary policy begins to become more flexible, allowing new capital to flow into the digital asset ecosystem.
