Global oil prices plunged more than 26% on Sunday after the OPEC failed to strike a price deal with its allies. Saudi Arabia, the largest producer of crude oil in the world, slashed the oil prices along with planning to increase oil production further to be ready for a possible price war. Consequently, the crypto market felt several shocks as Bitcoin was down by 10% within 24 hours.
As per a report published by CNBC, the price of the US West Texas Intermediate Crude dropped by 27.62% to $29.88 per barrel, while the Brent crude futures fell by 24.4% to $33.32 per barrel on Monday. On the other hand, Bitcoin, which was around $9,130+ on Saturday, is bleeding at less than $7,960 at the moment.
Likewise, other major cryptocurrencies like Ethereum, Ripple, Bitcoin Cash, etc. also witnessed more severe double-digit percentage losses. While such volatility is common in the industry, this is easily the worst downward movement in several weeks. However, the downward trend could also lure new investors in the crypto industry. While speaking to the news agency, co-founder of Kenetic Capital, Jehan Chu said,
“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips. We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long-term investments in the digital future and it’s key asset Bitcoin will be a winning strategy.”
On the flip side, the mass-selling spree of Bitcoin investors could have also been because the investors want to park their investments in oil commodities, as the low prices might also prove to be a tempting opportunity for investors.
Financial markets across the globe are facing a downward trend. The NYSE was trading below 241 points, while the BSE was down by a heart-wrenching 1941 points. This indicates the Bitcoin and other cryptos are running in parallel with other markets, and that isn’t necessarily a bad thing.