The recent non-renewal of the U.S.-Saudi Petrodollar deal has sparked concerns in global finance markets, with analysts suggesting that gold and Bitcoin could serve as hedge tools in case the dollar weakens. The historic agreement, established in 1974, provided Saudi Arabia with military and economic support in exchange for selling oil in USD. With the agreement now expired, Saudi Arabia has the freedom to sell oil in any currency, a move that could potentially reduce the dominance of the dollar in the oil trade.
Recently, Saudi Arabia reportedly joined a China-led CBDC trial, leading analysts to speculate on the future of the Petrodollar deal and its impact on the financial system. Crypto analyst Doctor Profit believes that the failure to extend the agreement could lead to the U.S. printing more dollars, resulting in inflation and a bullish market for assets such as gold, Bitcoin, stocks, and real estate. Some social media users have also expressed concerns about potential USD inflation and the need to invest in alternative assets like gold, silver, Bitcoin, and commodities to protect against a weakening dollar.
Market analyst Lukas Gromen, a guest on the “Bankless” podcast, shared his insights on how investors can prepare for a market shift following the Petrodollar deal failure. Gromen recommends avoiding long-term government bonds and allocating a portion of investments to gold and Bitcoin as hedges against inflation. He believes that this strategy will help investors navigate potential market uncertainties and protect their wealth in the face of changing economic conditions. Overall, the Petrodollar deal’s non-extension has raised questions about the future of the dollar’s dominance in the global economy and prompted individuals to consider alternative investment options to safeguard their assets.
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