Bitcoin Analysts in Dilemma as BTC Drops for Third Consecutive Day while Oil Hits Its Highest Price Since 2008 

UTC by Kofi Ansah · 3 min read
Bitcoin Analysts in Dilemma as BTC Drops for Third Consecutive Day while Oil Hits Its Highest Price Since 2008 
Photo: Depositphotos

Bitcoin over the years has been tagged as a hedge against inflation and as such, many market experts expected a major boost in price as Russia’s invasion of Ukraine has sent crude oil to its highest price since 2008.

Bitcoin has seen its price drop for a third straight day as the geopolitical tension continues to rise. Bitcoin at press time was trading at $41,567, down 3.79% in the last 24 hours while the US dollar has since increased within that same time partly due to the continual rising of oil prices.

After a 14% rally on February 28, Bitcoin bulls aimed to break the price above the $45,000 mark before March 4’s options expiry but failed to establish that foothold. The momentum around the biggest digital coin is starting to shatter again as many analysts believe that its price should be gaining a lot from the current geopolitical situation.

“Asian desks and high frequencies are cutting exposure on BTC while long-only funds in European are selling. Brokers are also selling on behalf of clients more than usual as sentiment leaning slightly more bearish at the moment,” Laurent Kssis, a crypto exchange-traded fund expert and director of CEC Capital, told reporters.

Bitcoin over the years has been tagged as a hedge against inflation and as such, many market experts expected a major boost in price as Russia’s invasion of Ukraine has sent crude oil to its highest price since 2008. Things have however not turned out as many predicted or expected and the question many analysts are asking now is if Bitcoin may sever ties from stocks and start to trade more like a safe haven asset such as gold.

“I’m wondering if bitcoin is starting to show the first signs of maturity as a safe haven,” Jason Deane, an analyst at Quantum Economics, stated, adding that if so, this could, theoretically, become a positive outcome for bitcoin.

Bitcoin’s price over the past few months has also been attributed to the stern manner of regulations and announcements from the US federal agency. Stocks, surprisingly, has also suffered the same fate as bitcoin within that same period.

In the early stages of Thursday, Oil prices soared to their highest level since 2008, with West Texas Intermediate crude, the US benchmark for oil, reaching $116.57 per barrel at one point during the trading session. The current events unfolding has seen many concerns from economists as many believe the higher oil prices may drive up inflation, which is already at its highest in four decades.

Jerome Powell, chair of the Federal Reserve, in an address before the House of Representatives Financial Services Committee on Wednesday stated that he expects the central bank to increase rates 0.25% point at its next regularly scheduled meeting later this month and cited high inflation, coupled with a tight labor market and strong economic demand as reasons why the Fed needs to start tightening monetary policy.

Bitcoin News, Commodities & Futures, Cryptocurrency news, Indices, Market News
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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