Bitcoin (BTC) and Crude Oil, a New Series

Bitcoin (BTC) and Crude Oil, a New Series

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A panel known as the Joint Ministerial Monitoring Committee (JMMC) OPEC + on implementation of the agreement to reduce production – took place online today.

Cryptocurrency market experts expect the likely rise of Bitcoin and other cryptocurrencies in the near future, more specifically, starting from August.

The failure of the OPEC + deal to reduce oil production in March led not only to a fall in oil prices in the negative zone but also to a collapse of financial markets and a drop in bitcoin price. It turned out that cryptocurrency directly correlates with leading indexes. Following the fall of the S&P 500, BTC collapsed to $3,800. To exit the nosedive, the countries included in OPEC + agreed to reduce production by almost 10 million barrels per day. This yielded results, crude oil, which had a price of $16 in April, gradually rose to the level of $40, which experts consider equilibrium. Bitcoin during this time also came out of the dive and occupied the price channel of $9,000 – $10,000.

If at a new meeting of the Committee disagreements arise again, then the spring scenario may repeat: crude oil will collapse and the crypto market will collapse with it. But now, OPEC members know what could follow after the turbulence in the oil markets and are unlikely to want to repeat the crisis.

In addition, to stabilize the situation, the United States conducted the next stage of a quantitative easing program. About $4 trillion was injected into the markets.

There is another factor that influenced the cryptocurrency market – at the end of March, the US Securities and Exchange Commission (SEC) won a lawsuit against Pavel Durov and Telegram. The court ruled that $1.7 billion investments in tokens Gram were illegal and banned their issuance.

After all these events, the cryptocurrency market capitalization dropped to $150 billion. But by the beginning of June, it had grown to $270 billion and has remained at this level until now. Big investors and funds, ‘the whales’, are forced to recognize that the US dollar the other fiat currencies are under pressure and inevitably come to the decision to invest in bitcoin.

But there is another point of view: invest in shares of oil companies, at least in the short term. In anticipation of the OPEC + meeting, they have already grown, but it is likely that they will continue to rise if OPEC countries agree to reduce the level of production decline to 7.7 million barrels per day. In this case, the growth of the cryptocurrency market is postponed, but not for long. Experts suggest that in August when the new OPEC + agreement takes effect, rising global markets will push the cryptocurrency market as well. And bitcoin will finally come out of the channel above $10,000.

Currently, bitcoin is still trading flat, and Brent oil has risen a bit, to $43 per barrel.