Hello, guys! What do you think? Can crypto and the oil industry be connected?
No.The oil price crash is caused by a trade war between Saudi Arabia and Russia.They just can't negotiate a reduction of their oil production.If they manage the reduce the oil production,the oil prices will go up.This is a temporary situation.And no,cryptocurrency markets have nothing to do with oil prices.I don't think the crypto community should be worried about the oil market.Having lower oil prices is usually good for most countries that mostly import oil and for the global economy in general.
They are the huge countries who are holding huge stock of oils in the world, their production is really high compared to other countries. Also, Saudi Arabia and Russia are not that affected by the virus and they can still produce oil whenever they want. Too much production of oil results to a decrease in demand of the oil, most especially that the quarantine all around the world are still active. That's why the oil's price in the market becomes very cheap because the only industries that uses oil those who are manipulating a factory of goods for the people, households, and limited vehicle. Some cryptocurrency are used to buy oil with the bigger company and I think that there's somehow correlation between the cryptocommunity and oil's price.