Park Sang-hyuk, editor of Digital Asset publication, explained that Bitcoin prices rose following U.S. President Donald Trump’s announcement of ‘Project Freedom’ due to market expectations of declining oil prices, according to his appearance on SamproTV on the 4th.
Project Freedom Background
Project Freedom refers to a U.S.-led maritime support initiative announced by President Trump to facilitate the movement of ships trapped in the Hormuz Strait.
Market Mechanism Behind Bitcoin’s Rise
Park stated that “market expectations of oil price declines following Project Freedom expanded, leading to increased prices in risk assets including digital assets.” He further noted that “OPEC+ 7 countries’ agreement to increase crude oil production starting June also heightened market expectations for oil price declines.”
According to Park, the recent inverse relationship between oil prices and risk asset prices means that market expectations of rising risk asset prices are reflected in digital assets, explaining Bitcoin’s price increase.
Remaining Uncertainties
Despite the positive market sentiment, Park cautioned that “if the Hormuz Strait does not fully open, OPEC+'s production increase agreement may remain only a plan.” He added that “the U.S. and Iran continue to show disagreement over nuclear negotiations, making it difficult to say that oil price uncertainty has been clearly removed.”
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