A single Bitcoin (BTC) now buys over 600 barrels of crude oil as an unprecedented sell-off takes BTC purchasing power sky high.
According to data from monitoring resources including Bloomberg on April 20, futures for a barrel of WTI expiring in May shed 36% on the day.
BTC holds $7K as oil turns back clock to 1983
At press time, the contracts were worth $11.37 — heading for their lowest since inception back in 1983.
Despite attempts to cut supply, it appears oil markets may well fulfill the prophecy of Bitcoin proponents and fall to $10 per barrel or lower.
As CryptoNewspeople reported, even United States President Donald Trump forecast a barrel changing hands for $9, at the time seemingly unfazed by the prospect.
WTI crude futures 1-day chart. Source: Bloomberg
At the same time, the gap between May and June futures has widened, indicating that despite the rout, belief remains that a major bounceback will occur.
That wasn’t enough to avoid some unlikely scenes elsewhere in the oil market. On Monday, Western Canadian Select even managed to break into negative prices.
“Even negative oil .. because shutting down production is more expensive than giving it away,” Bitcoin price analyst PlanB summarized.
1 ETH or 15 barrels of crude?
There was an air of amusement among Bitcoiners as prices dropped, with BTC/USD remaining broadly steady at $7,000.
Bitcoin 1-day price chart. Source: Coin360
“How long can you run an Antminer S9 with 1 barrel of crude oil?” CasaHODL co-founder Jameson Lopp mused on Twitter.
Others noted that even a single Ether ($180) bought over 15 barrels of WTI, while the black gold’s volatility was plain to see compared to other macro assets. Year to date, WTI is down 64%.
Bitcoin has been broadly indifferent to the oil market in recent weeks, more closely tracking movements in major stock markets.
Earlier, CryptoNewspeople published five key factors likely to influence Bitcoin’s price performance this week.