To call it bizarre would probably be an understatement — for the first time in history, the price of the main US oil benchmark took such a massive hit that some traders had to pay buyers to take huge stashes of oil off their hands.
The price on the futures contracts for West Texas Intermediate (WTI) crude is due to expire today and with the COVID-19 pandemic bringing the world to a virtual standstill, the production of crude has far exceeded demand.
With the price of WTI crude falling to record lows, even one bitcoin could buy quite of bit of ‘black gold.’ More on that and other important cryptocurrency news from the past 24 hours in BeinCrypto’s daily cryptocurrency news roundup for Apr 20.
One Bitcoin Now Buys Almost 7,000 Barrels of Oil
It is worth noting here that the spillover effect from the last major oil price plunge eventually slipped into the cryptocurrency market, causing Bitcoin to crash hard. However, during this latest oil price slide, Bitcoin does not seem affected in quite the same way.
Although trading down on the day, the BTC remained close to the $7,000 mark by the end of Monday.
Can Oil’s Pain Become Gold’s Gain?
As mentioned in the previous section, the last time the oil prices fell substantially was due to the oil price war between Russia and OPEC. It ended up negatively affecting pretty much every single market on the planet.
However, if we were to pay heed to what gold bugs like Peter Schiff have to say, the current state of the global oil market could actually be a blessing in disguise for gold investors.
Massive Setback for DeFi app Lendf.Me
On April 19, Lendf.Me suffered an attack and lost some $25M in assets.
According to a Medium post, the team paused Lendf.Me when they became aware of the situation. The attack was made possible by a vulnerability within the ERC777 token standard. Law enforcement has been contacted.
Cryptocurrencies vs. Cannabis Stocks — Which is the Better Investment?
The majority of cannabis-related stocks are trading at or near all-time lows, despite indications that the sector might not be impacted by the economic shutdown. In this article, our technical analyst Valdrin provides an in-depth look at the performance of major cannabis indices along with individual companies and compares their performance to that of cryptocurrencies.
Some Traders Believe a Major Altcoin Surge is in the Cards
Murmurs about the imminent arrival of another ‘alt season’ are doing circles on the cryptocurrency side of Twitter yet again. To be clear, we have been periodically hearing these speculations suggesting an incoming altcoin surge for a while now. In reality, the last time the cryptocurrency market saw a true ‘alt season’ was back in 2017.
Nonetheless, well-known trader @Damskotrades tweeted three charts yesterday, showing the Bitcoin dominance rate, altcoin dominance rate and the price of Litecoin. He suggested that due to a confluence of factors from these charts, altcoins could soon begin to increase.
Bitcoin Analysis for April 20
In the weekly time-frame, the Bitcoin price has finally reached a close above the $6,900 area — something it had been unsuccessfully trying to do for the past four weeks. However, it still has not cleared the entire wick resistance from these weeks. The next closest resistance level is found at $7,600.