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- Investors were mess up with the fluctuations of Bitcoin prices, and today, crude oil prices had dropped to below zero for the first time in history.
- On the other side, the king coin seems to be weak after this heavy oil crash.
- According to the head of digital assets at Swissquote Bank, Chris Thomas Bitcoin may tumble down to $6,400.
By the time most of the investors were mess up with the fluctuations of Bitcoin prices, today, crude oil prices had dropped to below zero for the first time in history. The negative price depicts that the sellers were paying buyers to take the deliveries to avoid experiencing storage.
Fall in the Bitcoin prices origins from the tumble of the Oil Prices
On the other side, the king coin seems to be weak after this heavy oil crash—Bitcoin hands near 6,856.12 at the time of writing this article and have suffered rejection above $7,200.
The fall in the Bitcoin prices originates from the tumble of the ‘black gold’. Mainly the oil traders have dig out from the May futures contract on the West Texas Intermediate’s (WTI) crude, which is the major oil standard for North America, making the oil drop below zero for the first time.
Ultimately, the sell-off has affected the global financial market resulting from creating a bearish pressure over bitcoin. The conventional economists are stunned, expecting Bitcoin price will fell to zero instead of Bitcoin.
However, this issue roared over social media, bashing several flip-flop reactions of the crypto lovers. An investor and a bitcoin enthusiast tweeted regarding oil price drop over bitcoin that Bitcoin has priced in oil as 1BTC is approximate equals to 600 barrels of oils.
#bitcoin priced in oil
– Follows stock-to-flow perfectly
– 1 BTC ~ 600 barrels of oil pic.twitter.com/Wsxn4ZhmYU— PlanB (@100trillionUSD) April 20, 2020
Frank Chaparro, a famous podcaster and news director at The Block shared on the platform that, however, the crisis made us see seen spine-tingling equity volatility, Treasury yields hit record lows, oil prices fall below zero, unprecedented Fed printing and bond purchasing, but as of now, he finds bitcoin might be more stable than anything else.
People say bitcoin is wild.
Throughout this crisis, we’ve seen spine-tingling equity volatility, Treasury yields hit record lows, oil prices fall below zero, unprecedented Fed printing and bond purchasing.
Right now, bitcoin might be more stable than anything else.
— Frank Chaparro (@fintechfrank) April 21, 2020
Bitcoin advocates are still an optimist about the future of the top coin
Moreover, a cash crisis appears gearing market again that can be assumed by the losses in traditional securities like gold, prominent currencies like Japanese yen, and Swiss Franc, along with a 0.5 percent rise in the dollar.
According to the head of digital assets at Swissquote Bank, Chris Thomas Bitcoin may tumble down to $6,400, while some Bitcoin advocates are optimistic about the future of the top coin.
As per Matthew Dibb, the CEO at Stack, despite oil crash, bitcoin and other major digital assets have largely remained out of danger. There is a drop in the value of BTC today, but the market and the energy commodities do not show any significant correlations.
