Arthur Hayes, co-founder of BitMEX, claimed that rising oil prices due to escalating Middle East conflict could lead to significant Bitcoin price increases.
The Link Between Oil Prices and Bitcoin
Hayes explained that if Iran were to strike major oil and gas fields, oil prices would spike, dragging other energy prices up, leading to an increase in Bitcoin's fiat value.
Historical Examples and Current Trends
Hayes referenced historical commodity gains between 1973 and 1982, noting the oil prices increased by 412% and gold by 380% during the Arab oil embargo and Iranian revolution.
Middle East Conflict Escalation and Its Implications
Oil prices have fallen 3.7%, yet Bitcoin gained over 8% this week, topping $68,000 for the first time since late July. Israel warned of retaliatory strikes against Iran following recent missile attacks.
The instability in the Middle East and rising energy prices create potential for increased Bitcoin value, indicating possible correlation with traditional assets during global economic shifts.