Macro strategist Luke Gromen believes that surging energy costs could set the stage for a dramatic rise in Bitcoin and gold, as inflationary pressure shakes confidence in traditional financial markets.
In a recent post, Gromen argued that a spike in oil prices often leads to inflation, pushing central banks into a corner. As the cost of energy rises in fiat terms, so too does the value of hard assets like gold — and, increasingly, Bitcoin. The key trigger, he suggests, is what happens to the bond market in such scenarios.
If energy prices climb high enough to drive inflation aggressively, Gromen says bond yields will become unsustainable without intervention. That’s when central banks typically resort to printing money to keep yields from spiraling — a move that weakens the currency and makes non-sovereign assets more appealing.
Bitcoin, in his view, stands to benefit significantly. Not only is it more scarce than gold by stock-to-flow standards, but its foundations are tied directly to the energy sector: mining BTC requires enormous electricity input, giving it a unique link to physical energy.
In a future where governments are forced to print more money to keep the system afloat, Gromen sees assets without counterparty risk — like gold and Bitcoin — as the likely winners.
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