727 FinancePANews October 23 news: Analyst Darkfost posted that, as Brent crude oil prices remain above $100, Bitcoin is facing a severe macroeconomic environment.
The continued rise in Brent crude oil prices may signal an economic slowdown, thereby limiting the available liquidity in the market, especially in high-risk asset markets such as Bitcoin. Over the long term, when Brent crude oil prices enter a strong upward trend and rise above their annual average, Bitcoin's performance tends to slow; conversely, when Brent crude oil prices fall sharply, Bitcoin often rebounds. There is no simple causal relationship between Bitcoin and Brent crude oil. What may truly adversely affect risk assets is the economic environment accompanying rising oil prices.
In July, the market had a brief respite, and Bitcoin immediately seized that opportunity. However, since then, Brent crude oil prices have rebounded strongly. It is not that Bitcoin cannot sustain its momentum; after all, liquidity can shift between different markets, but the current economic conditions are not conducive to new liquidity injections.