Impact of Crushing Oil Prices on Bitcoin

The proverbial Black Swan has landed on Oil sector. The unprecedented fall in oil prices this week saw a new historic low of (negative) -$53 per barrel for May Futures contracts. The market had to be momentarily frozen at $0.01 to make arrangement for the negative pricing.

It's not just WTI who's facing negative prices, oil storage capacity is nearing full almost everywhere. About 80 ships carrying cargo are floating on water without a place to unload it as oil consumption sinks in the locked down world.

So how is the overall economic slow down going to affect the Bitcoin price?

Although Bitcoin prices has not crashed as deeply as other assets, it has plunged nevertheless. We don't see any signs of pump even though its halving is just 3 weeks away.

Bitcoin prices are influenced by technical analysts as currently technical traders dominates the bitcoin market. But the overall negative sentiments and uncertainties resulting from the unexpected economic shock is also pushing its prices downward.

Thus many people are forecasting lower prices for bitcoin.

But I beg to differ.

Sooner than later, people will recognize the true value of bitcoin as the store of value. It has always been stated as safe haven. So when do we need a safe haven if not in the times of crisis like this?

We should never forget that the last Black Swan viz. sub-prime crisis of 2008 had resulted in the very birth of Bitcoin.
So this crisis should result in a new peak in the price of bitcoin. Whether there is a new peak or not, it appears to me that a bull run is on its way soon.

And this crisis will change a lot of power equation ...on political level as well as in the types of investor class in bitcoin. In the long run, TA won't be the only deciding factor for bitcoin's price. Recognization of its real value will dictate its price.

Disclaimer:
DYOR before you invest anywhere. I ain't responsible for your profits or losses.