After Accidental Bitcoin Plug, Trump expects oil prices crash to just $9

Suzat

April 1, 2020 3:56 pm

After Accidental Bitcoin Plug, Trump expects oil prices crash to just $9
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Donald Trump, President of the United States, after accidentally advertising Bitcoin (BTC) last week, has now indicated that he expects oil to crash to just $9.

In a press conference, Trump restated what has enhanced a propensity for lower oil prices, on March 31. Luke Martin, Trader & Analyst, tweeted:

Donald Trump was conversing among talks with both Russia and Saudi Arabia, both of which plan to increase oil production this month despite the fall in demand caused by Coronavirus pandemic. West Texas Intermediate (WTI) crude values have dropped more than 50% in the last month only.

“Look, it’s $22, but it’s really much cheaper than that if you want to negotiate — nobody’s seen that, That’s like from the 1950s, it really is — to think that it was $50, $60, $70, $80 — and now it’s $22, but you know, if you put a good bid in at $9, I think you could probably get what you wanted, right?”

Donald Trump

The last time was in 1998 when oil circled $10, Saudi Arabia likewise flooded the market to ward off an advance by Venezuela. Bitcoin has restricted its year-to-date losses to almost 10%, whereas WTI has emitted roughly 70%, according to data from observing resource Skew.



Macro assets returns for 2020. Source: Skew

Trump’s comments were particularly anxious coming on the back of the disturbance facing both the U.S. dollar and its issuer, the Federal Reserve. After the Fed said that it had “unlimited” money, Trump claimed that the state could manipulate remarkably, describing it as “our money” and “our currency.” This, in turn, sent shivers under the spine of Bitcoin supporters, as the lack of such interference in the money supply is a great advantage above fiat which advances the cryptocurrency a form of “hard” money.

The designed production boost in April is especially notable for Russia’s fiat currency, the ruble, and those who use it. Profoundly tied to oil prices, the ruble has jumped to its lowest level against the dollar in four years.

Ironically, Russia pays money to support the ruble’s exchange rate while additionally producing oil for a saturated market currently.

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