How can crude oil prices be declined to enhance the encryption market

The encryption market remained on the brink of the abyss on Thursday, as some investors seized profits in the wake of the recent gains from the two numbers.

Bitcoin (BTCThe price was trading at $ 102,700, while Ethereum (EthIt fell from the highest level this week from $ 2700 to $ 2,500. The most important other dictations such as Ripple (Xrp), Solana (Teller), And Shaiba Eno (GrayHe decreased by more than 4 %.

How to enhance the decrease in crude oil prices for the encryption market

The potential catalyst for Betcoin and other altcoins is the constant collapse of crude oil prices. Brent, the international standard, fell for the second consecutive day, reaching $ 63. Likewise, West Texas Interidia has decreased to $ 60.20, its lowest level since May 9. Both standards decreased by more than 25 % of their highest levels this year.

Prices decreased as Donald Trump hinted that his administration has made progress in indirect talks with Iran. A possible agreement will see Iran to stop its nuclear program in exchange for reducing sanctions. The possible result is to increase oil exports at a time when global supplies are already increasing. At its last meeting, Opec+ Cartel voted to increase production for the second month in a row.

Reduce crude oil prices can support the encryption market by reducing gasoline costs, which reduces inflation. In a publication on Wednesday, the White House male Gasoline prices decreased for three consecutive months.

Low inflation, in turn, gives the Federal Reserve Chamber to start lower interest rates-a result that would benefit from encrypted currencies and other assets of risk. For example, Bitcoin and most Altcoins rose in 2020 and 2021 as the federal reserve has strongly cut.

The economic data that was issued this week showed this American inflation Less direction In April. The main consumer price index decreased from 2.4 % in March to 2.3 %, while the basic inflation remained by 2.8 %.

Trading truce to enhance encryption and stocks

Another total catalyst for the encryption market is the last trade A truce between the United States and China. This truce led the two countries to reduce the definitions significantly. The United States reduced its fees from 145 % to 30 %, while China brought its fees from 125 % to 10 %.

The UK also reached a trade agreement with the United States last week and negotiated similar deals with other countries, including the European Union.

As a result, analysts now believe that the risk of trade and stagnation has calmed down. On Wednesday note, David Costin of Goldman Sachs Lower The possibilities of stagnation and the increase of his S&P 500 to $ 6100 from $ 5100.

The strong stock market will also benefit from encrypted currencies due to the positive connection that often exists between the two classes.