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.