Bitcoin Forum

Hello, guys! What do you think? Can crypto and the oil industry be connected?

i think the current bitcoin crash is some way connected to bitcoin, because of the big whales moving their founds to backup a lil the markets.

Everything is crashing, but some areas will recover faster than others, will be hard to see the Oil recovering fast, but bitcoin will do. Don't forget about the halving on the other side of the corner.

We are still learning the economics of Cryptocurrency. The coronavirus outbreak seems to be causing a selling of everything from stocks to crypto.
The current crash in price of oil is a strategy to hurt Russian economy. The oil consumption were decreasing anyway and lower oil prices would certainly be a boost for post virus economic rebuild. For crypto prices, it's just wait and observe.

For me, it is not totally connected, just like what they are talking about on Gold or stock markets.
Oil started to fall at the start or year 2020 which in january, oil already lost more than 40% since January 2020, so in that case I don't find any reason that Bitcoin and Oil is totally connected.
Please do note also that most of the market now are in dumps, just like stock markets.

After the price pump to $9100, the whales tend to convert their bitcoin and altcoins into fist and I see not connection of the latest bear market with the crude oil price fall. The price fall by the whales can be the prepaid for bitcoin halving effect as i know history will repeat itself.


I support this. You are right. Cryptocurrencies  will recover fast because the whales that are moving there money out will anticipate for bitcoin halving as well and invest back on bitcoin and altcoins. So, I think this is the right time to wait and see the market fall and invest after the bear market is over.

I think there is no relationship between the price of bitcoin and the price of oil. The price of oil, according to some analysts, is being affected by the coronavirus as demand decreases, and there was no agreement in OPEC regarding reducing production levels. In the case of bitcoin, the causes of its variation are generally not precise, and usually some of those possible causes are just speculation.
I believe, as has happened before, that the price of bitcoin and other cryptocurrencies will be counted in a short term. Now is the time to invest in them.

The virus might be the very reason why we have such prices in the market now but there is no data to prove that it really is. The economics for cryptocurrency is complex due to its volatility rate, nonetheless overcoming it would be nice and great for all of us.

I guess every market is rattling from oil to stocks and to crypto market due to the corona virus outbreak, we don't have anything to point here but the huge thing in front of us. Found out that the oil price crashed is the lowest since 1991 . Hurting the Russian economy is not the concern here, just remember that Russia is one of those who founded the OPEC alliance in 2106.

We will all crash by the Corona virus. Corona may infect bitcoin then  ::)

Cheap oil=Cheap energy=Cheaper mining=Cheaper Bitcoin

All I could think about is how they will be connected industry-based? When the oil is used for energy, it's possible that it could be used for powering up the mining farms and it is somehow connected, so when oil prices go decreases, energy will be cheaper. More Bitcoin will be kept and saved in the miner's pockets. It could also be connected when they accept cryptocurrencies as their payment.

https://www.pymnts.com/blockchain/bitcoin/2020/plunge-in-oil-prices-triggers-crypto-sell-off/

It has some effects on the current situation that we have with the Covid-19. It can be a coincidence or not but it has something to do with this for sure.

This is to be expected because of our current epidemic problem, with the Corona Virus. not only the Oil industry, more industries out there are crashing and losing some sales because of this epidemic. as for Bitcoin, I don't think they have some kind of connection. Because those two are from different pages.

FTFY

Oil market is down to 30% happened in just a single day,

In the other side bitcoin is broken below 8000$  for the first time since January 10 from the market price of 10000$.


https://bitcoinist.com/should-the-crypto-community-be-worried-about-the-oil-market-crash/

To those who said Coronavirus outbreak will not affect the cryptocurrency market.

This is what has happened

Due to the outbreak the demand for crude oil has reduced significantly across the globe. In China it has declined by more than 20 percent. Since, the demand is low and the supply was unchanged two of the biggest supplier of crude oil globally, Russia and Saudi Arabia had a fight on reducing the production.

Since Russia opposed to Saudis request on reducing the production. The kindom country in oder to teach a lesson to Russia suddenly increased the production of crude oil, resulting the price to go down significantly.

This caused a ripple effect and the global market crashed. The effect of this crash can be also witnessed in crypto market as the price of Bitcoin went down by more than 10%.

Cornona pandemic is a new experience in the modern world and the whole world is in panic state.
This could be a reason but the sudden crash in bitcoin price is also being linked to the selling off of 13 thousand bitcoins (0.07% of total Bitcoins circulating supply) by the plustoken scam. Such large sell off would have a larger effect than the price on oil.
https://cointelegraph.com/news/bitcoin-drop-due-to-13k-btc-plustoken-scam-not-coronavirus-analysts/amp

ask yourself this:
for the past 11 years do you know of even one case where bitcoin price was affected from any other market crashing or pumping? the answer is simply no. and 11 years is not a small time either. if bitcoin were to be affected by any of them then it should have shown something so far but it has never done that.
so why should things change now?!!

the only explanation i have for the current market state is a lot of panic sells with a strong manipulation.

Most likely, it was the sale of 13,000 bitcoins that led to the current drop in the price of bitcoin, and not the coronavirus epidemic. Cryptocurrency, in particular trading on the stock exchange, can be dealt with without leaving your apartment. Therefore, the spread of coronavirus is unlikely to have so lowered the price of bitcoin.
We remember how the cryptocurrency market collapsed after Mr. Fox sold several batches of bitcoins at 8,000 in each lot. The release of a large number of bitcoins on the market usually lowers its price for a short time, after which it is usually restored. Today we see a decent increase in the price of bitcoin to $ 7,944. Therefore, I think that in the near future the growth of the cryptocurrency market will continue.

It has been a global problem and everything is crashing! Everything is affected by this virus not only crypto.

But I think we shouldn't be worried. The virus is somehow controlled now and the government is doing its best for it not to spread. Cross fingers that it really won't spread and I am sure everything will be back to normal again.

No.The oil price crash is caused by a trade war between Saudi Arabia and Russia.They just can't negotiate a reduction of their oil production.If they manage the reduce the oil production,the oil prices will go up.This is a temporary situation.And no,cryptocurrency markets have nothing to do with oil prices.I don't think the crypto community should be worried about the oil market.Having lower oil prices is usually good for most countries that mostly import oil and for the global economy in general.

I think it's not just about crypto enthusiast that should be worried with the ongoing oil war.

I personally believed that everything is connected here, global stock market, crypto's and other form of investments such as gold and oil. One scary though, is that we might be closer to another global recession because of what is happening around the world.

All should be worried about these things, not only the oil war but also the corona virus outbreak. Since a huge part of economy is relying on the oil we might face some difficulties with what's ongoing and will be going.

Sure thing it is, crypto market is rattled by these market, oil and stock on which I conclude to be the effect of the price movement downwards now. Global recession is possible but seeing the global stock market in Asia is still looking good unlike with the western part, China's stock market is still healthy however India is looking bad.

The US sanctions were supposed to weaken Russia, but in fact it made Russia stronger. The Corona Virus has messed up a lot of global commerce. and this includes travel and transport, which has led to a reduction in demand for oil. OPEC tried to limit production to maintain the higher prices, but Russia has seen it as a chance to hit back at the US, so they refused. WTI is now trading at $31, and Russia's production costis around $20, so they are still making a profit. The US shale oil ( fracking ) production costs are around $72, so they are making a loss, and starting to default on loan interest payments. This will hit the derivatives market in the US, and has contributed to the drop in stock prices. This created a bear squeeze, and speculators are being forced to sell hard assets to cover their obligations. This accounts for the pause in the rise of gold and silver, and could be an explanation for the drop in the price of Bitcoin. One could take this as an indication that Bitcoin is becoming a hard asset, and this is bullish in the long term.

I'm watching the support levels, and waiting for the hockey stick rise that I believe will happen to gold, silver and Bitcoin some time this year.

I'm not a financial analyst, so check my statements before you make any investment decisions.

This actions from the market is more on doing an artificial movements, since halving is coming more and more big players are creating  dumped to form
a bearish run and let those weak holders to panic and sell out their holdings, it's all inside the crypto industry and not outside, so it's not something related with oil or any big assets that creates this fall.

We have a general panic in most of the markets. If we will see that this would turn into a global crisis - a serious one with drastic unemployment increase, then, of course, many individuals may be forced to sell their portfolio in order to support themselves (instead of increasing demand for cryptos). Still, if we have whales, one big transaction for 150 000 BTC has more influence on the market than 150 000 transactions for 1 BTC.

What we should be worried about are these hackers - such events are harmful to the image of the whole crypto community and are very likely to be an argument for increasing KYC, banning crypto mixers and increased control (indirect centralization) by authorities. This could end in the obligatory annual wallet ownership declaration and obligatory explanation regarding each crypto transfer to and from a particular wallet.

lol man seriously ? oil and crypto ?  this is silly but i heard some speculations before they say oil and crypto are connected but still it didnt convinced me   .  i only believe on my own    .   

cryptos are online while oil is offline   .  maybe oil have an impact on offline assets   and maybe oil can affect other offline stuffs   .  however i do believe that corona virus have something to do on the drop of the price  . add in the fact that china and south korea are the countries that are totally affected   . those countries are said to have a high number of crypto users .

Yeah it has gave, a few days ago when the oil price had decreased we found a lot of panic seller for bitcoin, so it is price had decreased for almost 12%.

But we don't have any worried about that because it might take a few times. Before the decreased came we have a good news, the government of france has considered that bitcoin is money and we can also see some good information who come from several countries.

As you can see now bitcoin price has been increasing again, I believe we will touch $9000 again in a few days ahead. So, you can save your worried now and focus against your investment in bitcoin again. If you sold your bitcoin when the crash came you need to buy it again before you late.

I think that cryptocurrency owners should not worry too much about lowering oil prices. Everything in the economy is interconnected, so there may be certain consequences for cryptocurrency, however, I do not see a direct relationship between the price of cryptocurrency and the level of oil production. The problem so far has been outlined in Russia due to the fact that the cost of oil production there is much higher than in Saudi Arabia. Putin is used to showing his toughness and strength, but this is not the situation where it was worth doing. I am pleased to see how in this situation Putin loses. He too imagined his leadership abilities and it would be a cold shower for him. And it’s time for the people of Russia to understand that they are led by an ordinary adventurer and war criminal.
In the future, the oil price will nevertheless decline, since the states, and in particular, the states of Europe, intend to gradually switch to alternative energy sources.

Depends on where you live and how oil is part of your economy. I'll give you 2 scenarios:

1. Brunei.
- Oil price fixed at 53 brunei cents (currently about $0.37) since 1983. That's also the highest quality petrol you can get. You get cheaper fuel if you want.
- 0 taxable income.
- Oil is virtually all of state revenue
- welfare state, pensions, free healthcare, free education till University (actually you even get a student allowance and get sent abroad)

Since oil started crashing around 2014 (thereabouts, can't remember) state's been cutting down on benefits. Fewer scholarships, fewer trips outside, more strict welfare rules. It affects all Bruneians.

2. Malaysia
- Oil price subsidised by govt, floating price since the noughties
- One of the highest taxable income in the region.
- Oil is a majority but not all of state revenue
- hugely increasing foreign debt since the noughties

Govt complains of less and less revenue thanks to oil price, but people are happier as petrol has never been cheaper. Petrol price has a huge knockon effect for the consumer. Food gets more expensive. Public transport too. Regular Malaysians are happier now. Rich Malaysians not so.

I agree that the direct reason for Bitcoin dropping from $9k to $5k was panic selling. However, there is a cause of panic selling as well, and it is Covid-19 becoming a pandemic (or, rather, how serious and scary it all became in the media when the WHO made the announcement). Another thing I want to address is you referring to 11 years without Bitcoin being affected by any other market. The thing is, the last World economic crisis was before Bitcoin was created, and the last pandemic was not occurring in the media era plus Bitcoin was in its early days back then. So I'd say that the current situation is the one Bitcoin never experienced before, so what never happened before might well happen now.

Short term wise, it still works as before, such kind of price drop is common in bitcoin's history, and has not reached 90% as it used to do. But long term wise, it is unclear at current stage

IMO, since cryptocurrency always goes online, and internet is not disrupted, so this whole ecosystem has not been affected. Supply still will shrink after a few months, but demand might drop a bit due to that people are chasing USD right now. But because of measures like curfew, people will stay at home more, thus go online more

QE infinite will provide unlimited USD, but the question is wether those liquidity will enter crypto market and how. USDT is also in a QE phase, maybe that is the reason this time it stopped the price drop, this is the most interesting development right now comparing with the last several market downturn: Now we also have a QE to save the market, how ironic

the only way that supply could shrink is if we were burning bitcoins, which we aren't. otherwise it constantly increases but since there is a cap the rise will end at some point. the only thing that "shrinks" or more precisely halves is the speed of creation of new coins.

Yeah, It was just an hour that oil price has become zero market value. May it shocked the world market and the people who are seeing but not in the crypto community. We are not correlated to the market outside, in fact, we are having in different trend base of what we experience today and even before. And have to think that makes us feel the drop? It can be but not that big enough to drag the market down.

The impact of the oil crash will at least only occur at the beginning because of the panic that is bound to occur but at a time like this, we also cannot really assume that the decrease that occurs simultaneously with the oil crash has a strong connection, because even after a few days passed as we know recently the crypto market got a big pump and with that incident also at least proved that the two did not have the strong connection that was feared.

Bitcoin already decoupled from oil or stocks since its recent flash crash in fact when oil or stock market was crashing this past weeks. Bitcoin had a little price movement because the weak investors was shaken off since the last major dump in april 1st.

Im expecting for Bitcoin to grow upwards and benefit from this financial crisis, if it manage to hold this week's green candle bar.

Hello everybody. I agree with those who argue that these are completely unrelated things, moreover, today cryptocurrency is a vivid illustration of exchange speculation. Waiting and observing is the best statement. The fall in oil prices was the result of inconsistency in the actions of the main countries that produce oil. Sooner or later, they will agree anyway and the price will fly up. I'm not sure that this will somehow affect the movement of the price of cryptocurrencies. Yes, both cryptocurrency and oil are both participants in exchange speculation, but at the same time, there are two multidirectional participants.

It is connected.

Not to all of the users obviously but for those people that have a job that is related to oil and cryptocurrencies mainly the miners. In the past weeks, I thought that the pandemic would not affect the price of Bitcoin at all but there are ways that it can be affected like this one. It is not directly an effect but still, it is a ripple effect, as they say it.

They are the huge countries who are holding huge stock of oils in the world, their production is really high compared to other countries. Also, Saudi Arabia and Russia are not that affected by the virus and they can still produce oil whenever they want. Too much production of oil results to a decrease in demand of the oil, most especially that the quarantine all around the world are still active. That's why the oil's price in the market becomes very cheap because the only industries that uses oil those who are manipulating a factory of goods for the people, households, and limited vehicle. Some cryptocurrency are used to buy oil with the bigger company and I think that there's somehow correlation between the cryptocommunity and oil's price.

If I am not mistaken they are very different and are not connected to each other but if you are going to say stock market then they are related to each other. Crypto market can easily incraese or decrease it's price base on demand and most of the demand are coming from the big whales therefore if the oil price will crash it cannot affect the demand of crypto market.

But a pandemic scenario is separate as the market crashes pretty bad in the midst of pandemic where many countries impose a total lockdown in their area. Therefore oil crash cannot affect that much compare to pandemic scenario so as a crypto lover you don't have to worry that much if in case the oil prices will goes down as it is not the basis whether the crypto market will goes down or not.

There's no direct connection for these two cryptocurrencies and oil are two different markets but may affect each other during this crisis.

Lower oil price would be an advantage to everyone as it can also lower the price of all commodities and services that may give us enough savings that we can invest into cryptocurrency but as soon as we experience the need and shortage of money after the prices went up again because on the increase in the oil's price then we will start pulling out are investments in cryptocurrency to buy what we need.

Right now, since the price of oil is still low and people don't spend enough for leisure cryptocurrency was able to recover fast after the downfall a few months ago. It like an ecosystem where there might be no direct connection to each species but the cycle affects all entities in that society.

The world saw the biggest oil market crash in history recently and i don't think it's because of crypto currency cause personally i don't think crypto and oil industry are connected. Here (https://oilprice.com/Energy/Oil-Prices/The-Real-Reason-Oil-Prices-Crashed.html) you can find clearly what is the main reason for oil market fall. Not just oil market, every single marketplace are down right now and there is the only one reason and that is COVID-19. And as i mentioned before because both industry are not connected so there is nothing to panic about it.

Right now I think this is a very good question to be asking.  My answer to this question as a financial guy by trade, is yes, oil could certainly be something the cryptocurrency community could or should be worried about.  The reason being is pretty simple.  Often there are times in the financial markets where Oil is a leading indicator of how stocks will bounce (whether up or down).  Back in roughly 2016 seemingly every day the markets would flow regardless of all else, exactly on the news of Oil it's self.  Love it or hate the cryptocurrency market is often effected by the price of stocks and the markets themselves.  Just take a look at the past year and it's easy to see this trend.  With the halving coming up, I'm really hoping for stable stock markets (which are right not closely related to oil markets).

As far as the market is concerned it looks like Bitcoin is not really affected by the oil crashed. But the sudden crash could impact positive and negative effects. On positive side yes we can buy cheaper oil but on negative side if prices don’t recover a lot of oil companies will begin to shut down and slowly affecting businesses.

Why have to worried about the oil crash for bitcoin price, not connected with oil have higher or lower price for bitcoin. When on the top price they are not waiting will oil have higher price too. Different method and system between oil and bitcoin, just investor take care with bitcoin how will going on.

There can be no special connection between oil and bitcoin. The previous big drop in oil prices occurred long before the birth of Bitcoin. And the fault was not at all economic problems, but big politics. And now everything revolves around this.