Bitcoin falls below $ 7,000 and oil prices are still plummeting

The price of Bitcoin has fallen below $ 7,000 in response to the severe slump in the price of WTI oil futures. In the current situation, with the price of Bitcoin undergoing the pressures of the pandemic in progress and the imminent halving, the cryptocurrency par excellence also seems to suffer from the recent collapse in the price of oil.

The collapse in oil prices may have fueled the latest drop in Bitcoin

Oil prices have recently plummeted terribly, trading negative. A recent Bloomberg report showed that the price of West Texas Intermediate (WTI) futures contracts – the oil benchmark for North America – fell so low for the first time.

This happened simply because the coronavirus pandemic ran out of economies so much that it also reduced oil purchases. For this reason, North American oil companies have substantially too much oil compared to buyers or even deposits.

The collapse in oil prices has had significant effects on the S&P 500 and the Dow Jones index. Bitcoin is also suffering and is currently listed at $ 6.856. Although it may not be directly connected, Stack co-founder Matthew Dibb has speculated about an indirect connection.

BTC's turnaround "is more likely attributable to losses in the stock market, which can be directly or indirectly influenced by crude oil prices, rather than the downward trend in crude oil directly."

Bullish and bearish views on Bitcoin

Regardless of the current situation, many are still bullish about Bitcoin's chances. Popular author Glen Goodman said that because of the pandemic, the US Federal Reserve is making several moves to save the economy.

Goodman also indicates that some of these moves pass as manipulations that could prove harmful. The good news is that the cryptocurrency market is detached from these dynamics and this could be favorable to it.

There is also halving to consider. Halving the reward for miners, leading to a greater shortage of BTC, is expected to inflate its prices. Indeed, history suggests that conditions are created for a significant peak after a halving.

Voyager Digital CEO Steve Ehrlich believes that the current economic situation, combined with halving, will be favorably bullish for Bitcoin. However, not all of them are bullish. Famous Bitcoin supporter Peter Brandt has warned that Bitcoin may not live up to its expectations.

In a tweet, Brandt says there is enough reason for anyone optimistic about Bitcoin. Regardless, he points out that adoption rates are still low, suggesting that the cryptocurrency represents only a small percentage of global trade.

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