Crude oil prices surged to $101 a barrel, a 55% gain in 10 days, the most extreme move in history.
The market reaction was inevitable as major stock indexes fell to a 10-week low, while Bitcoin also saw an initial positive impact with a 16% jump before losing its gains.
History shows that Bitcoin has often followed oil gains.
From the surge in oil prices during the COVID-19 pandemic to conflicts in the Middle East, Bitcoin has once surged by as much as 45% in less than a month when oil prices surged sharply.
While not a surefire formula, this pattern gives investors hope that Bitcoin may be regaining its bullish momentum.
However, the situation is more complex now.
US-Israeli tensions with Iran pose high risks to the market, while rising inflation and a weak US jobs market could hold back Bitcoin’s gains.
Furthermore, Bitcoin is now more closely correlated with the technology sector, especially the Nasdaq 100.
If the conflict in the Middle East subsides sooner, the stock market could recover, and Bitcoin could get an additional boost.
If history repeats itself, Bitcoin could potentially reach $79,200 by the end of March, averaging a 20% increase from its current level of $66,000 since oil started surging.
