It has been reported that China and Russia have begun using Bitcoin in some energy deals, potentially reshaping the digital currency market.
Use of Bitcoin in Energy Deals
According to investment manager VanEck, China and Russia have started using Bitcoin and other digital assets for some energy transactions. Bolivia has also announced plans to import electricity using cryptocurrency, and French utility giant EDF is reportedly exploring the potential of Bitcoin mining using surplus electricity currently exported to Germany.
Economic Trends and Bitcoin
Despite recent volatility, Bitcoin has continued to outperform Nasdaq across all major timeframes over the past week, month, and year. Sigel noted that while slower economic growth alone isn't bullish for Bitcoin, the policy response could create favorable conditions for its growth.
The Future of Bitcoin in the Global Economy
Sigel pointed out that the current shifts in U.S. Federal Reserve policy may affect Bitcoin's movement. He also highlighted the U.S. Dollar Index (DXY) as a key indicator. "Continued weakness in the dollar could support the narrative that Bitcoin is being used as a hedge, especially in an environment of geopolitical fragmentation," he added.
These developments indicate that Bitcoin is gradually transforming from a speculative asset into a functional monetary instrument, particularly in economies seeking to reduce their reliance on the dollar.
