Bitcoin Forum

Can the hike in price of crude oil  effect cryptocurrency market?As such hike also has bad impact  on share market.

That's a good question. We don't know how bitcoin will perform during a recession in the U.S. or globally, which is likely to come soon, likely with rising oil prices to boot. I think a recession may depress the price, but if inflation really picks up, it could be reflected in higher prices for bitcoin, as people move away from fiat currencies.

I think that the rise in oil prices will not have an impact on the rise in bitcoin prices, because I think it does not have much to do.

Definitely not! Crude oil is not related to cryptocurrencies. No matter what happens to it, it will never affect the crypto market unless it all the transactions related to it will be based on blockchain but for now, it will not affect the market.

I think that everything in this world is connected. And the crypto currency, even though it does not directly depend on oil, but it will turn off the market, from its mood. Only how much is connected we will see later.

The rise in crude oil prices will not have much impact on the price of special currencies. The encryption market is still a small market, and there are not many large organizations involved. I have seen a related survey. The total market value of the encrypted market is only 1% of the world economy, and the situation in the past shows that bitcoin and crude oil do not have a strong linkage.

These hikes affects the share markets because there eis a relationship between crude oil and some of the shares(specifically shares of companies that deals with crude oil). In cryptocurrency, I think it will not have much of an effect since there is only one crypto related to oil, and that is only petro(which probably is the only one that will be affected). The others will remain as is.

crude oil is not related with cryptocurrency and I don't think that this will give an impact for the cryptocurrency too. cryptocurrency is on the internet but maybe there is an impact on the cryptocurrency and we still don't know what will happen later if it's really happening.

but if the economy in one country that is crash, then the cryptocurrency will get the impact because this will makes the country will disturb and people will lose their trust to their government and in that time, cryptocurrency will change their view about a new technology that they're denied.

I'll turn the question around and ask you if you can come up with any plausible explanation of why oil and Bitcoin would be correlated. The same goes for the share markets, why would there be a correlation?

It is easy to explain a correlation between the USD and oil or the USD and the US stock market as they are priced in USD, but I'd be interested to hear any theory linking BTC.

hike in price of crude oil can only affect cryptocurrency market if the market players in the oil industry uses crypotocurrency to fund their purchase of oil.If there is a token based on crude oil production, then that particular token can be affected if there is a price hike in crude oil.

For there to be a genuine correlation, there needs to be a valid reason.

And for oil markets, honestly I don't see any sort of reason that they would be either positively or inversely affiliated with each other. If you would mind sharing your thoughts on the reasons, then I'm all ears. But for now with not much historical data, I wouldn't jump to conclusions of any correlations.

All markets are interconnected in one way or another, but if the relationship isn't strong then there will be no predictable correlation. The only crypto that I can think of that would benefit from oil rising would be the Petro, even though this is supposed to be bitcoin speculation, which I don't think will be affected at all.

My opinion is that there isn't any affect of oil on the crypto market, because people from different economic sectors are interested in these and since nobody regulates the crypto market. We can also take a look at price dynamics instead of speculating. There was about a 10% decrease on the global oil market on 21 of June 2017 - there were minor 10% btc fluctuations, but they were happening all the time anyway. On the 18 of December the oil cost 57$, on  26 of January - 65$. This is an about 15% increase. The bitcoin's price actually went down 30%. I suppose we can see no dependence whatsoever in this case.

I think that who ever are the investors in OIL will divert from OIL to crypto world, this is the only one option i am felling which will affect crypto market other then that i dont think that their will be any crypto market price affect will be their apart from this option.

There is no adverse effect on cryptocurrencies with crude oil or coal or gold,which is different from the performance of the world of cryptocurrencies if anyone thinks it will affect the value in the crypto market also that is wrong dude.

I don't think that a lot of people are getting it. Yes one price increase of a product does not affect others. But when we are talking about crude oil, one of the essential products making other things work then we are talking about a price increase of all products. Cars, Airplanes, Machines almost majority of the businesses needs oil in their operations whether it is their main business or just there delivery trucks using it a lot of things depend on oil. A considerable price increase in oil would mean an increase in other prices as this businesses will see the increase in expense brought by oil. And therefore answering the question yes it can effect the crypto market as users might liquidate their holdings to accommodate the price increase of products.

Share markets are inversely proportional to oil price. when oil market  increases,  at that investors withdraw money from stock and invest in commodity market or in oil.So same cae may be followed  in crypto world and people will try to invest in crude.In coming time there is huge chance of oil price hike.

The USD keeps its price because of demand for oil. Every major oil exporter but Syria has to sell in USD which increases demand for the USD allowing it to be strong. If oil is booming then other currencies will lag behind the USD. Fiat currencies are tied more closely to USD than bitcoin because of international trade, so even if oil does not affect the buying power of crypto, it affects the buying power of fiat. If every country had gold-backed currency this wouldn't matter, but right now every country's currency is highly-dependent on the USD. You could argue that crypto is the same. But at the same time, crypto is more independent because banks cannot print out billions of dollars of crypto to bail out governments at the expense of fiat holders. So in times of inflation, banks can create money up to nine times their reserves, whereas bitcoin is only created by miners. Therefore when the oil industry is booming, Wallstreet becomes more trustworthy, and when oil is doing poorly, bitcoin becomes more trustworthy.

I think you must be confusing oil with treasury bonds.

Have a look at a comparison chart of oil against the S&P500.

https://www.tradingview.com/x/NRi6s9S7/
https://www.tradingview.com/x/NRi6s9S7/

There's no correlation there, inverse or otherwise. Then do the same with bonds.

https://www.tradingview.com/x/INHgWRGU/
https://www.tradingview.com/x/INHgWRGU/

Like all market correlations it comes and goes but there is enough to see that most of the time they are inversely correlated.

Investors buy stocks and bonds for the same reason, to earn a yield. That presents a choice between the two that explains the inverse correlation.
Oil is a commodity and doesn't give a yield through dividends or interest. That means the oil market is driven by things that affect supply and demand of oil. When the economy is strong stocks will do well and that should also increase demand for oil. The supply side is driven by other factors.

I don't think crude oil prices can effect crypto currency market since crude oil prices are fixed based on $ and the crude oil prices are directly inter linked with $. If in future crude oil prices are fixed with crypto currencies then it may effect but not at the current situation. There are other factors also linked with crude oil prices like demand and supply as well.

Actually I was also thinking about this...Crypto market will be effected by the hike in the price of crude but I have not seen any news regarding this matter. Am also confused on this matter.PS. every market is under the control of big investor and now a days some investors are also investing in crypto currency so there should be a link....

Cryptocurrency does not takes it price from crude oil so I don't think a hike in price will one way or other affect cryptocurrency market unless other  wise traders in cryptocurrencies are using their funds to purchase crude oil or invest in it.

Yes I am agreed to your opinion. Market capitalisation of crypto is very less in comparison of other market.As crypto  market is increasing ,the impact of fluctuations in share market,oil will also be seen in future.

The price of crude oil can affect the cryptocourse market, Although crypto coins do not depend on direct oil or any other goods. Everything else in the world is connected to something, but how much will be linked later we will look after it. It depends on the market, when the market is off.

Oil prices have effect only on those countries which produce or trade oil. Bitcoin has nothing with that by my opinion, so I doubt that oil prices and bitcoin price changing will ever be connected in the sense that the OS means.

The oil market is completely doesn't have any relation with the cryptocurrency market. The world economy has a dependence upon the oil market. Even when the world economy was under collapse bitcoin was flourishing which shows that bitcoin and world economy doesn't have a big relation. A small impact might happen with regards to oil market variation.