Brent crude dropped nearly 12% Monday to around $94, but market expert Sam Daodu warns oil must fall further - into the $80-$85 range - for Bitcoin (BTC) and XRP rallies to become sustainable.
Daodu identifies energy prices as the critical link between Middle East tensions and crypto markets. Persistent high oil levels fuel inflation, keeping the Federal Reserve from cutting rates. With rate-cut expectations delayed, risk assets like Bitcoin and XRP remain under pressure.
Bitcoin hovers just above $70,000, while XRP consolidates near $1.44, both pulling back from recent highs. Daodu attributes this to macro forces triggered by oil spikes above $100 amid regional escalations, including Strait of Hormuz disruptions.
Crypto’s 24/7 markets amplify volatility, absorbing geopolitical shocks instantly, often leading to sharp overnight moves during thin trading periods.
Despite setbacks, technical signals remain constructive. Bitcoin has formed higher lows since late February, and XRP has held a $1.35-$1.45 range through multiple crises, showing underlying resilience.
Daodu stresses that a drop in Brent to $80-$85 - likely on ceasefire progress - could ease inflation fears, revive Fed rate-cut bets, and unleash pent-up demand for risk assets.
Conversely, oil above $100 will continue to neutralize bullish crypto fundamentals, including potential Bitcoin commodity classification, XRP ETF inflows, and the advancing CLARITY Act.