Macro -strategist Luke Gromen unpacks how developments in the energy market can directly influence Bitcoin (BTC).
In a new thread on the social media platform X, Gromen tells His 340,800 followers that he thinks that gold and bitcoin are ready to rise like energy prices.
“1. When physically [gold] Be revised for a large multiple of oil, energy prices in Fiat will shoot, so that gold is sent much higher on Fiat.
2. When energy prices shoot up in Fiat, the price of BTC will also shoot up in Fiat.
And the BTC share-flow ratio is much higher than gold. ”
To the demand for the connection between oil and BTC, the Macro Expert explains These rising energy prices stimulate inflation, which in turn in turn bump Press the bond market.
“Because the bond market must be covered with printed money to prevent inflation from being driven by an increase in energy prices to collapse …
Rising energy prices beyond a point will break bonds.
As soon as that happens, money must be printed to stop the return to maintain the solvency of the government, or the debts of the sovereign nominal will be restructured.
Assets without counterparties must perform better than (gold, BTC). “
When inflation is noticed, bonding investors require higher returns (returns) to compensate for the loss of purchasing power. Bonds that are locked in lower yields are usually witnessing a fall in value such as investors, extend the assets that offer little to no real returns, which activates a collapse of the bond market. Grom thinks that the FED will be forced to buy bonds with printed money to prevent a collapse, creating favorable conditions for Bitcoin and Gold.
Grows too notes That at the most fundamental level, Bitcoin is a product of the energy market, because miners rely on huge amounts of electricity to mines BTC.
“Electricity used to support BTC and its price is very real, enough to provide a large part of the American continent.”
At the time of writing, Bitcoin is worth $ 106,401.
Follow us on X” Facebook And Telegram
Don’t miss a beat – Subscribe to get e -mail notifications directly to your inbox
Check price promotion
Surf the Daily Hodl -Mix
Generated image: midjourney
Credit : dailyhodl.com
