The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Crypto Insiders Point to Bitcoin As Oil Hits Historic Lows, Triggering Search for Store of Value

by Daily Hodl Staff
April 20, 2020
in Bitcoin

The coronavirus pandemic has left a glut of crude oil as restaurants, retailers, manufacturers and airlines struggle through the economic downturn. The unprecedented drop in demand has pushed US oil futures prices to historically low levels, with one barrel clocking in below $0 on Monday,

US West Texas Intermediate (WTI) crude futures skidded into negative territory for the first time ever with producers looking for buyers. But with US storage tanks at peak capacity and the economy at a standstill with bankruptcies looming, the government is running out of ways to boost the price of oil.

[the_ad id="93550"]

Max Keiser, Bitcoin bull and host of the Keiser Report, is calling the slide a paradigm shift.

“I think the world is experiencing a paradigm shift away from oil so the historic highs we’ve seen in price might never come back.”

Says Tyler Winklevoss, founder of crypto exchange Gemini,

“After today, oil can no longer be considered a reliable store of value. Your next best options are the U.S. dollar (gulp), gold (scarce), or Bitcoin (fixed).”

Some analysts speculate that the collapse into negative territory is temporary as the price of the upcoming oil futures contract is set to expire on Tuesday, with upcoming futures contracts trading above $20 per barrel.

According to Alasdair Macleod, head of research for GoldMoney,

“[The] real price is what’s at the supply end of the pipeline, not the temporary depressed cash price at the delivery end. However, storage problems can be expected to hit the 6-month price in due course.”

Crypto analyst Peter Brandt, who has argued that Bitcoin remains in a historic bull trend, is watching for the fallout from the oil market.

“How much blood will be on the street b/c of Crude Oil?

Bankrupt trading firms
NYMEX — margin calls not met
Futures Commission Merchants

This is going to be ugly. Books will be written about today.”

Given the macro economic outlook, Brandt says he’s onboard with Bitcoin as a store of value but questions whether the digital asset can fulfill its promise.

“I understand the bullish narrative for $BTC relative to the: Fables of the Feds and their Frivolous Fiats The argument for the moon makes sense. My only question is whether Bitcoin is actually living up to its high expectations. This question does NOT make me a hater.”

While oil prices can bounce back above $20 per barrel once the May contract expires, the government is unable to print storage space for oil or induce buyers who are out of business. These limitations will continue to carve out a new normal, redefining value and the instruments that can store it.

Top countries by oil production since 1973#oil #oott #crude #wti

pic.twitter.com/OswwUvZdUG

— TheAmericanPatriot (@PatriotNews8) April 20, 2020

Crypto analyst Mati Greenspan, founder of Quantum Economics, writes in his newsletter,

“By now, the current oil contract has actually dipped below $1 per barrel. It’s been quite amazing writing today and watching the price drop. People who write in the crypto market are already quite used to this phenomenon where you write something about the price, but then the volatility renders your theories useless by the time it reaches the public.

Strangely enough, the price of bitcoin today remains barely changed and is now holding just fine at $7,000 per coin. I’ve had a bit of fun on Twitter today trying to calculate the oil/btc ratio, but now that oil is trading for one cent, it seems kind of pointless.”

Bitcoin is down 4.77% at $6,864 at time of publishing.

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/MDGRPHCS

Submit a Press Release

Industry Announcements

  • Bunzz Raises $4.5 Million Seed Round To Expand Its Smart Contract Hub for DApp Development
    January 24, 2023
  • Dogecoin and Shiba Inu Better Watch Out – Floki Just Had Three Big Things Happen for It
    January 24, 2023
  • Crypto Marketing – What Initiatives Will Bring More Value and Users in 2023
    January 23, 2023
  • Make Crypto Payments on BChat Web 3.0 Messenger – BChat Integrates Beldex Wallet
    January 22, 2023
  • KEY3.id Supports Multi-Chain Transaction, Partnership With KuCoin Wallet, CoinHub Wallet and Wallet3 To Launch 2023 Lucky Transaction Campaign With Over 30,000 Participants on Social
    January 20, 2023
  • Deposit EUR/GBP at Zero Percent Fees With Newly Launched SEPA/FPS Channels on Bitget
    January 19, 2023
  • Coinbase Lists Kava, Advancing Ethereum–Cosmos Interoperability
    January 18, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$22,724.09
$22,724.09
4.58%
Ethereum
$1,551.33
$1,551.33
5.7%
Cardano
$0.370775
$0.370775
6.47%
XRP
$0.395867
$0.395867
4.75%
Dogecoin
$0.087483
$0.087483
3.06%

Spotlight

  • Low Cap Ethereum-Based Altcoin Goes on 170% Run Following Release of New Roadmap
    January 23, 2023
  • Largest Crypto Wallets To Support Major Shiba Inu (SHIB) Upgrade As Dogecoin Rival Holds 70% Gains Year-to-Date
    January 26, 2023
  • Crypto Strategist Predicts Rallies for Polygon and Avalanche, Says Ethereum Setting Up To Outperform Bitcoin
    January 29, 2023
  • Ethereum-Based Gaming Altcoin Suddenly Erupts Ahead of $60,000,000 Token Unlock
    January 24, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl