The oil price war has been the drop that spilled the glass. Mass sales have caused some of the world’s leading exchanges to close by emergency, before the stampede causes greater damage. But, How does this affect the price of Bitcoin? In the following lines we explain it to you.
The flash crash that we just lived in the early hours of the morning has been one of the most violent in history.
Fear floods the markets. Many experts and analysts indicate that, if extended for a long time, a recession could begin very soon.
The WTI, the reference oil price of the US market, fell more than 25%, reaching USD 27 per barrel. While Brent crude, a benchmark in Europe, shifted towards USD 30, which meant a drop of more than 30% in a few hours.
This has been the steepest percentage drop in the price of black gold since the Persian Gulf War, in 1991.
And the gold?
Despite the extreme uncertainty, gold has slowed after reaching USD 1,700 shortly after its weekly opening. This price implies a maximum in 5 years.
It is currently at USD 1,672 per ounce, after slightly retreating and enclosing itself in a very small consolidation.
In the midst of the escalation of tension and pessimism in the financial markets, there is no doubt that the price increase will continue, due to its location as first in the list of refuge values. Hundreds of a year of positive history and millennia of use as a means of payment, guarantee its position in the current economy.
Bitcoin price finds no buyers
The crypto market has followed the descending course of the current economy, calling into question its ability to safeguard value amid uncertainty. However, Bitcoin has proven to be an excellent refuge option amid situations such as escalating tensions in Iran or protests in Hong Kong.
Bears keep dragging on the price of Bitcoin, causing that at the time of this writing is at USD 7,737, being located in an important support area.
Right now, it wouldn’t make much sense to get on the downward time trend that Bitcoin shows, because the support areas in which it is located, could still generate important bullish reactions. In addition, it is important to consider the imminent capitalization outflow of the main stock exchanges.
The intrinsic value of the cryptocurrency continues to support a bullish view amid a possible recession, one that seems to be knocking on the door.