Bitcoin’s Potential Rise from US-Saudi Deal End
Summary:
Bitcoin (BTC) is expected to benefit from the end of the US-Saudi petrodollar deal. Saudi Arabia’s decision not to renew the security agreement with the US, which expired on June 9, 2024, marks a significant shift in global economic dynamics. This move allows Saudi Arabia to trade oil and other goods in various currencies, including the Chinese RMB, Euros, Yen, and Yuan, and possibly explore digital currencies like Bitcoin.
Key Points:
- End of US-Saudi Petrodollar Deal: The deal, established in 1972, has been a cornerstone of the global financial system. Its termination is likely to accelerate the shift away from the US dollar.
- Saudi Arabia’s Participation in Project mBridge: This China-dominated central bank digital currency (CBDC) cross-border trial aims to facilitate transactions using CBDCs and includes central banks from China, Hong Kong, Thailand, and the UAE.
- Impact on Bitcoin: The anticipated increase in USD printing due to the end of the petrodollar deal is expected to lead to rising inflation, prompting investors to seek alternative assets like Bitcoin. Bitcoin’s fixed supply and decentralized nature make it an attractive hedge against inflation and fiat currency devaluation.
- Analyst Predictions: Crypto analyst Doctor Profit predicts that the end of the petrodollar agreement will put pressure on the USD, leading to increased inflation and a bullish trend for Bitcoin, gold, stocks, and real estate. The effects of this shift may not be immediate but are expected to become evident within 8-12 months.
Bitcoin’s role as a hedge against inflation is becoming more pronounced, positioning it as a potential beneficiary of the changes in the global financial landscape.