Analyst hails Bitcoin’s stability amid oil crisis

Bitcoin's consolidative price action over the past two weeks is bullish in light of the oil crisis and a strengthening Dollar, according to eToro's analyst

Bitcoin’s stable price action of late has highlighted its strength in light of crash oil and surging Dollar prices, according to eToro analyst Simon Peters.

The price of oil has remarkably been trading at a negative this week due to storage concerns being driven by a lack of demand.

“The recent tank in oil prices has seen the potential for deflation rear its ugly head, and investors have responded to this by flocking to the strengthening dollar”. Peters told Coin Rivet.

“Whilst stock markets, gold and treasury yields are currently down, bitcoin remains steady at $6,931″.

“With the bitcoin halving fast approaching, where miners will see the amount of bitcoin mined from each node reduced by 50 per cent, it could be that investors are choosing not to sell their holdings as we might expect, and instead are staying in bitcoin so as not to miss out on the anticipated gains in the months following the halving”.

“Last month’s rush to cash hit bitcoin especially hard. This time around, could the impending halving have mitigated outflows from crypto into cash?”

Over the years Bitcoin has been considered as a safe haven asset, often being touted as a hedge during periods of economic instability.

The impact of oil’s crash is yet to ravage global stock markets, with companies like Shell and BP expected to take a major hit, which will subsequently cause a slide in global stock indexes like the FTSE 100.

A further decline, coupled with Bitcoin’s reduction in supply after the halving, could well see an influx of institutional capital flowing into the cryptocurrency market.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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