Energy Price Surge Could Boost Gold and Bitcoin Amid Inflation Risks

The analyst Luke Gromen believes that an increase in energy prices could directly influence the price of gold and Bitcoin. Although typically, a decline in oil prices is considered favorable for cryptocurrencies. On the social network X, Gromen explained to his followers that the connection between oil and Bitcoin is quite simple — high energy prices stimulate inflation, which in turn puts pressure on the bond market. Investors, aiming to protect their income, withdraw funds from bonds and invest in other assets such as gold, Bitcoin, and others. The bond market is supposed to be limited by the existing money supply. When energy prices rise above a certain level, bond prices tend to fall. Once this occurs, the Federal Reserve must either print money to buy back bonds or restructure debt. Assets that lack counterparties, like gold and Bitcoin, are expected to perform well in this scenario," says the macro strategist.