Historical data reveals a strong correlation between Bitcoin price and oil prices: when oil spikes, Bitcoin typically follows suit with significant gains. Recent oil price surges have shown this trend. With WTI crude oil rallying 19% from $64.80 to $77 per barrel, Bitcoin’s price has experienced a downturn, currently sitting around $102,800. This drop may signal a potential buying opportunity, as past data indicates Bitcoin often rebounds sharply following oil-driven drops. 16-24% gains were observed within days of major oil price spikes. A similar rebound could push Bitcoin’s price to $119,200 by June 21st based on this historical pattern.
Analysts point to the expanding DeFi industry and growing institutional investment as key drivers behind recent price increases in Bitcoin.
While oil prices are a major driver of Bitcoin’s price movements, it’s crucial to remember that no trend is guaranteed. However, given the current positive momentum in oil prices and previous historical trends, it suggests another potential buy-the-dip opportunity for traders.