Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.
Bitcoin prices are expected to rise significantly if tensions in the Middle East lead to a surge in oil and energy costs, according to BitMEX co-founder Arthur Hayes. In an October 16 blog post, Hayes predicted that escalating conflict between Iran and Israel could disrupt major oil fields, driving global energy prices higher. This would, in turn, boost Bitcoin’s value, as Hayes argues that Bitcoin represents “stored energy in digital form.”
Hayes noted that when oil prices rise, nations short on oil turn to other energy sources, pushing all energy costs higher. He compared the current scenario to the oil crises of the 1970s, where both oil and gold saw massive price hikes. While Bitcoin didn’t exist then, its correlation with commodities during inflationary periods could lead to similar gains.
Bitcoin mining could also see adjustments. If energy costs rise, mining difficulty may drop, making it easier for new miners to profit.
As oil prices fluctuate, Bitcoin has already gained more than 8% this week, topping $68,000—its highest since July. Meanwhile, gold has also hit an all-time high, signaling increased investor interest in safe-haven assets amid geopolitical uncertainty.
This potential surge in Bitcoin underscores its role as a hedge against economic instability, making it a go-to asset during times of rising energy costs and global tension.