Founder of leading cryptocurrency exchange BitMEX Arthur Hayesin his blog post published today, made a scenario prediction about the conditions under which the Bitcoin price will rise.
Hayes explained through a scenario that an oil crisis, which he believes will happen, will cause Bitcoin to rally at the end of the day. BitMEX founder expects oil crisis to occur due to Iran:
How Will the Oil Crisis Come Out?
The crypto phenomenon announced that Iran, which controls the Strait of Hormuz, which is one of the important oil routes, will cause a major crisis if this road is closed. If this happens, the transportation cost of Saudi Arabia, one of the major issuers, will increase significantly. With the increase in cost, the price will rise.
“If Iran closes Hormuz, global oil supply will shrink by 17.3 million barrels per day.”
Oil Crisis Will Affect USA Negatively
The emergence of a possible oil crisis will negatively affect the world’s largest importer, the United States. The government will try to reactivate the inactive drills to counter the price increase.
How Will Bitcoin Price Increase?
Arthur Hayes explains how the Bitcoin rally will start at the end of the day with the oil crisis he predicted:
“In order for the old drillings to be operational again, access to finance needs to be easier.”
When it comes to investing in refineries in the USA, interest rates will be a major obstacle. The government will provide financing for oil drillings by lowering interest rates.
With the decline in interest rates, a big rally will begin in the crypto money markets.
While the US Federal Reserve’s weekly funding rate was 0.25%, Bitcoin was trading at $69,000.
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