Bitcoin Bulls Ride Oil Price Crash to Predict Wider Rally

Crypto traders are optimistic about Bitcoin's prospects, citing easing tensions between the US and Iran as a potential tailwind for the market. Analysts Michaël van de Poppe and Ted Pillows argue that the recent decline in oil prices is a positive sign, with Brent dropping 10% to $87 over the weekend.

The analysts believe that this development could ignite a wider rally in Bitcoin and risk assets. However, their bullish thesis relies on oil prices continuing to fall, which may not happen if tensions between the two countries escalate further.

Some traders were positioning for a relief rally over the weekend, but it appears that the diplomatic track is moving in the opposite direction. Iran has suspended talks with the US, and Tehran has rejected a proposal that would have reopened the Strait of Hormuz in return for Washington lifting its port blockade and sanctions on Iranian oil sales.

According to Matt Smith, director of commodity research at Kpler, 'I don't think we'll see the Strait of Hormuz open until next year.' The waterway has been a major chokepoint, with crude prices reaching multi-week highs due to the bottleneck. US gasoline prices have also risen 38% since February.