The research report discusses the potential impact of a global energy crisis on Bitcoin. It suggests that in the face of an energy shock, there would be a global loosening of monetary policy. This would likely lead to an increase in the value of Bitcoin due to its fixed supply. However, the report also highlights that Bitcoin mining requires energy and in a situation where global energy prices are rising, this could become more expensive. The report concludes that if a severe energy price spike occurs, Bitcoin is likely to re-emerge as non-correlated to general equity prices.
- Monitor global energy prices: An increase in global energy prices could impact the cost of Bitcoin mining.
- Watch monetary policy: In the event of an energy shock, there could be a global loosening of monetary policy which could increase the value of Bitcoin.
- Consider Bitcoin’s correlation with general equity prices: The report suggests that Bitcoin could re-emerge as non-correlated to general equity prices in the event of a severe energy price spike.