Bitcoin Rides Oil Supply Storm With Push To $70,000

Bitcoin (BTC) returned to $69,000 on Wall Street on Monday as markets reopened on the Middle East oil crisis.

Main points:

• Bitcoin is recovering after falling below $68,000 to close the week.

• The oil crisis continues as the G7 fails to agree on a timetable for releasing oil reserves.

• Bitcoin derivatives traders remain bullish in the medium-term outlook.

Analysis: Trump wants to buy time with oil

Data from TradingView showed that BTC price action is continuing the recovery that started before the week closed.

Now up 5% on the day, BTC/USD has shown strength against global equity markets, with Asia particularly sensitive to ongoing oil supply disruptions through the Strait of Hormuz.

The special meeting of the G7 countries to discuss the extraction of 400 million barrels of crude oil from their joint reserves ended with a decision.

“The G7 countries have reserves of ~1.2 billion barrels of crude oil, which is equivalent to ~60 days of oil flow through the Strait of Hormuz. 400 million barrels can supply about 20 days of oil flow through the Strait of Hormuz,” Kobeis Letter said.

“However, this is a risk. If the war continues after these resources are exhausted, the world will face an unprecedented energy crisis.”

Kobeissi stated that US President Donald Trump would like to buy the initiative “in a few more weeks”.

WTI oil was still up 9% at the time of the release, hitting $100 a barrel amid considerable volatility.

Meanwhile, gold has lacked momentum after starting the week with a retest of $5,000 to approach an all-time high.

Trading firm QCP Capital commented, citing gold’s move to the US dollar as a hedge against ongoing geopolitical uncertainty.

“With increasing uncertainty, global stock markets have turned defensive. That is, US Treasuries and gold have also failed to offer their usual safe-haven offering, as both have come under pressure as rising oil prices fuel fears of inflation and drive up yields,” wrote the latest “Market Color” analysis.

“Instead, the U.S. dollar has emerged as a preferred defensive asset, supported by high yields and the U.S.’s status as a net energy exporter.”

Bitcoin options traders do not see any “one-sided declines”.

As such, Bitcoin saw key price points that the bulls failed to recover from over the weekend.

related to: Bitcoin Brackets for Oil Shock and Death Crosses: 5 Things to Know This Week

Here, cryptocurrency trader, analyst and entrepreneur Michael van de Poppe hoped that oil would stabilize and allow the price of BTC to fall.

“Bitcoin is showing strength and it has already risen to $69,000,” he said.

“If oil continues to fall and the indexes start to rise again, I think we’ll see a continuation into the higher range again.”

QCP pointed to a “more nuanced view” for the market created by derivatives traders.

“For example, buying the 500x BTC 24APR26 72k straddle points to expectations of continued volatility rather than a sudden, one-sided decline,” it continued on options.

“Interestingly, most of the open interest in March is centered on the 75k and 125k bell strikes. While a quick recovery from these levels is unlikely, this position shows pockets of renewed optimism in BTC despite ongoing macro and geopolitical uncertainty.”