RELATIONSHIP BETWEEN OIL PRICES AND CRYPTO DURING WAR ■

#btc70k #ETHFI #XRPPredictions

. Oil Price Surge = Inflation Fears = Crypto Volatility

War disrupts oil supply (especially if it's in the Middle East, like U.S.–Iran) → oil prices rise (e.g., Brent Crude > $100/barrel).

Higher oil prices → higher global fuel/transport costs → inflation spikes.

Impact on Crypto:

Bitcoin (BTC) is increasingly seen as a hedge against inflation → demand may rise.

Altcoins may suffer due to their speculative nature → investors flee to safer assets (BTC, ETH, gold).

Stablecoins (like USDT, USDC) may also gain traction as people seek dollar exposure during local currency depreciation.

📉 2. Rising Oil = Market Fear = Short-term Crypto Selloff

In the early stage of war, fear dominates → risk-off sentiment.

Investors move out of volatile assets like stocks and crypto → prices initially drop.

Example: During Russia-Ukraine war (2022), BTC fell to ~$35K before rebounding.

🧠 3. Oil-Rich Nations & Crypto Use

Countries like Iran, Venezuela, or Russia, under sanctions, may use crypto (especially BTC, USDT) to:

Evade sanctions

Settle oil exports

This increases crypto utility but also invites global regulation & enforcement actions.