The connection between cryptocurrency and oil

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Due to the fact that the price of oil fell at the end of April, the main cryptocurrencies began to fall in price. For example, bitcoin lost 5% and is trading at 6,750 dollars, while its last price before that was 7,100$.

This relationship is caused by the fact that the value of cryptocurrencies depends very much on the state of the stock exchange. And that, in turn, reacts to the UPS and downs in the oil industry.

The coronavirus caused a serious stupor of the entire economy. Including in the direction of oil. Because of the quarantine, the demand for air tickets has decreased, bus tours have stopped, and much less fuel is purchased by transport companies. At the same time, oil companies do not reduce the volume of black gold production.

As a result, there are overflowing storage facilities and a drop in the price of oil. The cost of the Brent brand was below $ 16, which has not happened in the last twenty years.

If nothing changes, the value of bitcoin may continue to decline. As predicted in the company 8848 Inves in the worst-case scenario, bitcoin may fall even to 4 thousand dollars.

In our time, it is very important to be able to predict the situation and draw correct conclusions from it. A detailed forecast helps not to panic, but to turn the circumstances in your favor. Be able to think ahead and calculate your actions based on a clear plan for the future.

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