Bitcoin’s Role in a Post-Petrodollar World: Analysis and Outlook

Published 14/06/2024, 14:15
© Reuters Bitcoin’s Role in a Post-Petrodollar World: Analysis and Outlook

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  • The end of the US-Saudi petrodollar deal could boost Bitcoin as nations seek alternatives to the US financial system.
  • Rising US sanctions push countries towards BRICS, reshaping global finance and increasing Bitcoin’s appeal.
  • Bitcoin market sees mixed signals with overbought RSI, bearish MACD and bullish KST suggesting volatility.

As the end of the U.S.-Saudi petrodollar agreement approaches, Bitcoin is emerging as a potential alternative in the evolving global financial landscape. The dissolution of this longstanding deal has ignited debates about whether Bitcoin’s rise is a genuine opportunity or mere hype.

The continuous imposition of sanctions by the United States, leveraging its control over the global monetary system, is causing significant frustration. As highlighted by crypto analyst BitBoy in a YouTube video, recent sanctions targeting Venezuela and Russia exemplify this issue, driving nations toward the BRICS coalition, consisting of Brazil, Russia, India, China, and South Africa. This group is emerging as a formidable contender against the International Monetary Fund (IMF), representing a shift in the global financial landscape.

China’s influence is notably growing in countries like Angola and Venezuela, prompting the United States to respond with even more stringent sanctions. This escalating economic warfare is accelerating a broader movement among nations to seek alternatives to the US-dominated financial system. Consequently, many are turning to BRICS, hoping for a more balanced and fair economic partnership.

While these geopolitical tensions increase, people are encouraged to protect themselves financially. Signing up for a digital identity card and completing Know Your Customer (KYC) processes on exchanges are recommended actions. The belief is that a significant financial shift is underway, and preparation is crucial.

The concern is quite evident due to the realization that the current financial system seems to be in a state of anxiety. There is speculation that the upcoming BIS discussion could be rather interesting and even shocking. This highlights the dynamic nature of the global financial markets and the importance of being proactive and flexible.

At the time of this writing, Bitcoin is trading at $67 060. 43, with a 24-hour trading volume of $27,184,983,872. However, it has decreased by 0.79% over the last 24 hours. Despite this minor dip, trading volume remains buoyant. The 1-week Relative Strength Index (RSI) of 64.64 suggests that Bitcoin may be slightly overbought in the short term.

Bitcoin/USD 1-Week price chart, Source: Trading view

Additionally, the 1-week Moving Average Convergence Divergence (MACD) trading below the signal line hints at a potential bearish trend on the horizon. However, the 1-week Know Sure Thing (KST) indicator trading above the zero line indicates the continuation of the current bullish momentum.

The post Bitcoin’s Role in a Post-Petrodollar World: Analysis and Outlook appeared first on Coin Edition.

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