Bitcoin Price Prediction as US-Saudi Petrodollar Deal Ends – Will BTC Play a Role?
The recent termination of the US-Saudi petrodollar agreement marks a turning point that could significantly influence Bitcoin’s financial trajectory. This development disrupts a decades-long economic standard and introduces the potential for increased currency diversification globally.
As nations like Saudi Arabia explore alternatives to the US dollar, including various major currencies and potentially digital currencies like Bitcoin, the implications for crypto markets are profound.
This shift may lead to heightened inflation and a reduced reliance on traditional fiat, positioning Bitcoin as a beneficial alternative. This evolving landscape fosters a favourable environment for Bitcoin price predictions, as investors might increasingly view it as a hedge against inflation and currency devaluation.
How the End of the US-Saudi Petrodollar Deal Benefits Bitcoin
The recent expiration of the US-Saudi petrodollar deal on June 9, 2024, heralds a significant shift in global financial dynamics, with potential benefits for Bitcoin (BTC). The agreement, which established the US dollar as the primary currency for oil trades with Saudi Arabia, has been a cornerstone of global finance since 1972. Its termination allows Saudi Arabia to diversify its trading options, including the possibility of using various currencies like the Chinese RMB, Euros, Yen, and Yuan, and exploring digital currencies such as Bitcoin.
Shift in Global Currency Dynamics
This transition from the US dollar could accelerate the move towards other currencies and digital assets. Notably, Saudi Arabia has joined the China-led central bank digital currency (CBDC) project, mBridge, which also involves central banks from China, Hong Kong, Thailand, and the UAE.
Dear @SaudiEmbassyUK, please would you give us an update on the (8 June 1974) US-Saudi petrodollar deal, which ended this weekend, after you gave 180 days notice last Dec. I appreciate that to complete @NEOM, you need a much higher oil price via the new gold-backed digital yuan. pic.twitter.com/cOSnEPv7l4
— The Young Pretender (@Dioclet54046121) June 8, 2024
This project aims to facilitate cross-border transactions using CBDCs and is compatible with the Ethereum Virtual Machine, suggesting further integration of digital currencies into mainstream finance.
Bitcoin’s Prospective Gains
The shift from the petrodollar could lead to increased US dollar printing to counterbalance the loss of its global oil trade monopoly, potentially causing inflation. Rising inflation generally diminishes the value of fiat currencies, making assets like Bitcoin more appealing. Bitcoin’s fixed supply and decentralized nature position it as a viable alternative during economic uncertainties. Here’s how Bitcoin stands to gain:
- Inflation Hedge: As traditional fiat currencies potentially devalue due to inflation, Bitcoin could see increased adoption as a hedge against inflation.
- Investment Shift: The anticipated inflation might drive investors towards alternative assets like Bitcoin, enhancing its value.
- Long-term Appreciation: Despite concerns that the average person may not invest in Bitcoin during inflation spikes, the market dynamics could still favor a long-term increase in Bitcoin’s value.
In conclusion, the end of the US-Saudi petrodollar deal could mark the beginning of a more diversified and digital global economy, with Bitcoin poised to benefit from these foundational shifts. This could usher in a bullish phase for Bitcoin as it becomes an even more critical component of global financial portfolios.
Bitcoin Price Prediction: June 10, 2024
Bitcoin (BTC) is trading at $71,000, up 0.48% on the four-hour chart. However, Bitcoin price prediction
Bitcoin (BTC/USD) is currently experiencing a choppy session, trading at $69,600, which reflects a minor dip of 0.06%. As of today, the pivot point stands at $69,100, providing a crucial baseline for traders and closing of candles above this level is supporting bullish Bitcoin price prediction.
The resistance levels are closely set, with the immediate one at $70,100, followed by $71,100 and $71,900. On the downside, support levels are identified at $68,400, $67,600, and $66,600.
