“Bitcoin has historically shown very little direct correlation with oil prices,” Markus Levin, co-founder of XYO Network, told Decrypt. “What tends to matter more is whether geopolitical tensions spill into broader financial markets.”
The market remains cautious, pointing to the downside skew in derivatives markets as a sign that traders are still paying for protection, Sammi Li, CEO of JU.COM, told Decrypt. But if the IEA's coordinated releases manage to restrain energy prices, the move may calm macroeconomic tensions and help overall market sentiment, Li added.
For a recovery to take hold, spot market demand must build, and derivatives positioning needs to return to a more balanced state, according to Li. If macroeconomic uncertainty lingers and subsequent rallies continue to be sold into, a further slide toward the $54,000 to $55,000 range would not look unusual, Li said.
