Why Oil Rises 🛢️

• Geopolitics: Middle East tensions or OPEC+ cuts reduce supply.

• Summer Demand: June-August travel increases gas consumption.

• Inflation Hedge: Central banks pause or cut rates, raising oil with inflation expectations.

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📉 Why Stocks & Crypto Drop with Oil Spike

1. Inflation Fear:

• High oil increases transport and production costs.

• Rising inflation prompts central banks to maintain high rates, hurting tech stocks and crypto.

2. Liquidity Shift:

• Capital flows to energy, away from growth and speculative assets.

• Investors pivot from crypto and tech to commodities.

3. Recession Risk:

• Rapid oil price rises may slow the economy through demand destruction.

• Traders sell stocks and crypto, fearing a slowdown.

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⚡ What to Monitor

• Brent Crude: $90–$100/bbl may pressure risk assets.

• DXY: Strong dollar plus high oil impacts crypto negatively.

• Fed & CPI: High CPI signals more crypto weakness.

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✅ Strategy

• Short-term: Invest in energy stocks and commodities.

• Long-term: Accumulate crypto.

• Use stablecoins and DeFi yields for protection.