Cryptocurrency Market Slides Lower, Good Time to Buy Bitcoin?

Monday's flash crash in reaction to Saudi Arabia's plan to increase crude production and cut oil selling price not only affected traditional

Cryptocurrency Market Slides Lower, Good Time to Buy Bitcoin?

Monday’s flash crash in reaction to Saudi Arabia’s plan to increase crude production and cut oil selling price not only affected traditional financial markets like equities and currencies, but also drove a similar decline in cryptocurrency markets worldwide. In reaction to the sudden crash in crude oil prices, over $26 billion of market-cap got wiped away from the crypto market over the weekend, and the sell-off continues into Monday as well.

In a span of a day, BITCOIN prices collapsed by more than 10% after Saudi Aramco announced that it would increase crude production starting in April and even reduce selling prices of all crude grades. This decision caused crude oil prices to lose around 30% of their value, and caused commodity currencies, stock markets and treasury yields to decline.

While volatility is not new to the crypto market typically, investors are suggesting that this is a good time to enter into selling trades, especially in the leading cryptocurrency Bitcoin. Analysts expect the cryptocurrency market to benefit in the near future from the reigning uncertainties over the potential impact of the coronavirus outbreak on conventional financial markets.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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