I’ve been wondering about something lately—why Bitcoin is so strong even as the U.S. faces rising oil prices.

Normally, an economic shock should pressure risk assets across the board, but even with oil prices moving this much, the crypto asset market is behaving differently. Could it be that this actually shows that the U.S. economy’s fundamental strength isn’t being shaken that badly?

Bitcoin’s durability actually reflects, in part, the stability of the surrounding economic environment. A shock to oil prices would normally make the whole market panic, but this time it’s different. The U.S. has also been reducing its dependence on oil, and maybe the measures to combat inflation are working.

With that in mind, the fact that resilience to fluctuations in oil prices is strengthening is also a positive factor for Bitcoin. Since the market is staying stable, the store of value function of digital assets is being trusted.

In reality, if oil prices surge sharply but U.S. inflation remains under control, then Bitcoin will likely keep maintaining its strength. As long as this setup continues, I think the crypto market’s resilience at the bottom will also be assured.