One Bitcoin can now buy 610 barrels of oil

One Bitcoin can now buy 610 barrels of oil

Dollar to Drop! Why Oil, Gold, and Euro Rise. Equity Investments. Bitcoin Price

Contents

One Bitcoin can now buy 610 barrels of oil
CONTENT

  • Oil quotes fell to their lowest since 1999 values.

  • Oil stocks continue to climb amid weak demand driven by pandemic.

  • One bitcoin can now buy 610 barrels of oil.

One Bitcoin can now buy 610 barrels of oil

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The oil industry continues to suffer heavy losses amid the coronavirus pandemic. As a result of the latest drawdown, oil prices almost reached $ 11.

The COVID-19 pandemic has triggered an unprecedented crisis, hitting the demand side of the economy painfully and disrupting manufacturing activity. Against this background, the oil market is threatened by a monstrous increase in reserves of unclaimed raw materials. Reflecting these risks, oil quotes almost reached $ 11 a barrel today..

Meanwhile, Bitcoin, the world’s main cryptocurrency, has continued to demonstrate resilience lately, hovering above the $ 7,000 mark. Thus, the simplest calculations suggest that one BTC coin can now buy over 600 barrels of oil..

Demand falls, oil reserves rise

Industrial activity in the world is now the victim of quarantine restrictions caused by the coronavirus pandemic. The number of cars on the roads has significantly decreased. Transportation of all sorts has been kept to a minimum. All this provoked a sharp drop in oil demand.

According to media reports, about 160 million barrels of oil are now stored on oil tankers around the world, waiting in the wings. [The Guardian] This figure broke the previous all-time record set in 2009 of 100 million barrels.

Unsurprisingly, oil prices are now in free fall. On the first working day of the new week, the price of futures for US West Texas Intermediate (WTI) crude oil almost reached $ 11. This drop clearly demonstrated that all the efforts of the oil producers belonging to the OPEC + alliance were not enough to restore price stability in the market..

New all-time high for bitcoin

Last month, market dynamics showed that bitcoin reacted very painfully to the collapse in oil prices, provoked by the inability of OPEC + participants to reach a consensus on cutting oil production. However, then almost every segment of the world market reacted in the same way, giving out a price drawdown.

At that time, the sharply increased volatility in the cryptocurrency market made many talk about the fact that this could again scare away both retail and institutional investors from the digital asset market..

Meanwhile, this time, Bitcoin has practically ignored the new collapse in oil prices, continuing to hold above $ 7,000 at the time of writing..

As a result, at present, the cost of one bitcoin, calculated in barrels of oil, has reached a historical maximum in the entire history of the existence of the cryptocurrency. The last time oil traded at lower levels than today was only in 1999, but then bitcoin did not exist yet..

This divergence prompted a number of members of the crypto community to publish similar posts on Twitter. As analyst and founder of Quantum Economics Mati Greenspan calculated, one bitcoin could buy 610 barrels of oil today.

One Bitcoin can now buy 610 barrels of oil

One bitcoin now buys 610 barrels of oil.

– Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) April 20, 2020

One Bitcoin can now buy 610 barrels of oil

#bitcoin priced in oil
– Follows stock-to-flow perfectly
– 1 BTC ~ 600 barrels of oil pic.twitter.com/Wsxn4ZhmYU

– PlanB (@ 100trillionUSD) April 20, 2020

Popular cryptanalyst PlanB (@ 100trillionUSD) added that the valuation of bitcoin not in dollars, but in oil also fully confirms his favorite theory of the scarcity of bitcoin, reflected in the Stock-to-flow model and promising cryptocurrency growth after halving.

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