The upside for Bitcoin if the US and Saudi Arabia drop their plans for the petrodollar

Bitcoin could face significant upside if the US-Saudi pact on the petro-dollar ends.

Bitcoin could face significant upside if the US-Saudi pact on the petro-dollar ends. This is a year of major financial restructuring following Saudi Arabia's decision not to renew its long-term cooperation agreement with the US, which expires on June 9, 2024.

This gives them the freedom to trade oil or any other product in different currencies such as Euro, Japanese Yen and not just US Dollars. Moreover, such a move could open up new horizons for crypto transactions, as digital assets like BTC will be used for them.

This development represents a major change from the petro-dollar system, which was established in 1972 after the US broke the link between the dollar and gold. This is expected to accelerate the global decline of the US dollar, a move that could significantly favor Battle н .

Saudi Arabia's involvement in the mBridge project – a cross-border test of China's upcoming digital currency with the participation of their central banks – is indicative of Saudi Arabia's intentions for economic diversification. The Bank for International Settlements (BIS) confirmed that Saudi Arabia was involved in the entire Project mBridge process.

This effort involves the central banks of countries as diverse as China, the UAE, Thailand, and Hong Kong, among others and others. According to Josh Lipsky, who works at the Atlantic Council's Geoeconomics Program – director of the “Global Business and Economics", stated:

 "The addition of a major G20 economy and the world's largest oil exporter makes it the most advanced cross-border CBDC project yet."

Famous crypto analyst Doctor Profit, expressions via X:

“The US-Saudi Arabia petrodollar agreement is ending and will not be renewed. This will force the US to print tons of new US dollars!”

Fiat currencies such as the US dollar typically lose value when inflation increases, prompting investors to seek safe havens in other assets. Bitcoin's fixed supply and decentralized nature make it able to capitalize on such a move.

According to Doctor Profit, Bitcoin will experience a bullish trend. He said:

"From this day forward the dollar will be under serious pressure, they will print dollars, inflation will rise - start looking for gold, BTC, stocks and real estate. "

Although immediate economic disruptions may prove difficult during this transition period to the euro; the long-term future outlook for Bitcoin remains bullish.

Given the volatility of traditional financial systems, Bitcoin takes on the role of a hedge against inflation. Its appeal as a store of value lies in its characteristics of being decentralized and deflationary, thereby protecting fiat currencies from devaluing.