Macro strategist Luke Gromen unlocks the way energy market development directly affects Bitcoin (BTC).
In a new thread on social media platform X, Gromen tells 340,800 followers that he believes he is poised to see gold and Bitcoin surge if energy prices skyrocket.
“1. When physical (gold) is revalued to a large multiple of oil, Fiat’s energy prices will skyrocket and gold will be much higher in Fiat.
2. As Fiat’s energy prices skyrocket, BTC prices also skyrocket at Fiat.
Additionally, the stock-to-flow ratio of BTC is much higher than gold. ”
When asked about the relationship between oil and BTC, macro experts explain that a surge in energy prices fuels fuel inflation, which puts pressure on the bond market.
“Because the bond market needs to get caps with printed money to prevent the inflation caused by collapse of energy prices…
A rise in energy prices beyond points will break bonds.
Once that happens, Cap Erd must be printed for the cap to maintain the government solvency.
Assets without counterparties need to perform better (Gold, BTC). ”
When inflation is up and down, bond investors will demand a higher yield (return) to compensate for the loss of purchasing power. Bonds trapped in low yields usually witness a decline in value as investors fled from assets that provide little or no actual profit, causing the bond market to collapse. Gromen believes the Fed will be forced to buy bonds with printed money to prevent collapse, creating favorable terms for Bitcoin and gold.
Glomen is also because, at its most basic level, Bitcoin is a product of the energy market, so miners rely on large amounts of electricity to mine BTC.
“The electricity used to support BTC and its prices are very realistic and enough to drive much of the US.”
At the time of writing, Bitcoin is worth $106,401.
Generated Image: Midjourney
