Everything is collapsing, but some domains will improve faster than others, it will be challenging to see Oil growing fast, but it can be said that bitcoin price will improve because the halving is near.
We are still studying the finance of Bitcoin. The coronavirus outbreak appears to be prompting a selling of everything from stocks to cryptocurrencies. Some economists believe that the current price crash of oil could be a strategy to damage the Russian economy. The oil consumption was declining anyway, and lower oil prices would be a help for post virus economic reform. For Bitcoin prices, just wait and observe.
Oil Price is going crazy: Impact on Bitcoin Price
The WTI oil price is going crazy. The futures contracts for May are trading around $40 or less. That means as much as the buyer gets this money per barrel (159 liters) for free. What exactly does that mean for investors? What will be its impact on Bitcoin Price? Should you invest now?
It can be said that both Bitcoin Price and Oil Price are not linked with each other. This is because if you carefully observe the market, then Oil started to fall in January 2020, and In March 20202, oil already lost more than 40%. So, in that case, we can say that Bitcoin and Oil are not connected. But if you apply the following logic, then you can say that if Oil is cheap, then the Bitcoin price is also low.
Cheap oil=Cheap energy=Cheaper mining=Cheaper Bitcoin
The question is, how will they be connected industry-based? When the oil is used for energy, it’s possible that it could be used for boosting the mining farms, and it is somehow connected, so when oil price decreases, power will be cheaper. More Bitcoin will be kept and stored by miners. It could also be linked when they accept Bitcoin and other cryptocurrencies as their payment.
The low price of oil indicates a shortage of demand linked with a lack of physical storage and a complicated delivery method, and this could be the advantage of virtual commodities like Bitcoin.