Petrodollar deal falls apart: Will Bitcoin reap the benefits?

• The U.S.-Saudi Petrodollar deal’s non-extension stirs jitters in the global finance markets. 
• Analysts tip gold and Bitcoin as hedge tools amidst fears that the dollar might fall. 

Saudi Arabia did not renew its 50-year-old Petrodollar agreement with the United States of America, which expired on the 9th of June, stirring speculation about the potential impact on the global financial system and Bitcoin [BTC]. 

The Petrodollar deal, set in 1974, assured Saudi Arabia of U.S. military assistance, security, and economic development support if the oil-rich country sold its treasure in USD.

Interestingly, the deal happened three years after the U.S. scrapped the gold standard. 

With no Petrodollar renewal, Saudi Arabia can sell its oil in whatever currency it wishes. 

Last week, Saudi Arabia reportedly joined a China-led cross-border trial based on CBDC (Central Bank Digital Currency).

Analysts viewed the move as a step towards,

“Less of the world oil trade being done in US dollars.”

Will the Petrodollar deal failure fuel BTC, gold?

According to crypto analyst Doctor Profit, the fact that the Petrodollar agreement has not been extended could push the U.S. to print more dollars. The analyst noted, 

“The US-Saudi petrodollar agreement ends and won’t be extended. This will force the US to print tons of new USD! From this day, dollar will come under heavy pressure, USD will be printed, inflation will start rising. Bullish for Gold, Bitcoin, Stocks, and real estate.”

Another user on the social media platform X (formerly Twitter) echoed the same sentiment and stated, 

‘There are two main outcomes – Massive $USD inflation, which will make everything you’ve seen so far, look like child’s play. Huge moves into Gold, Silver, #Bitcoin, and commodities. Only World War III could prevent that.’ 

The “Bankless” podcast also covered the topic and explored its potential impact and how to prepare for its effects.

The podcast’s guest, a market analyst Lukas Gromen, urged people to prepare for a market shift and summarized how he would do the same. 

“I see no interest in owing long-term government bonds. That’s makes zero sense to me. Then, I would take 20%-30% and put it in Gold and Bitcoin. And then I’d go to the beach.”

Put differently, Gromen foresees inflation and views gold and BTC as the best hedge against it after the non-extension of the Petrodollar deal.