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Does oil affect Bitcoin? Ans: Yes, but marginally related!

TVC:UKOIL   CFDs on Brent Crude Oil

Dear traders:

U.S. oil drops as much as 8% to below $70 as OPEC prepares to boost production.

Whenever oil prices crash, the digital economy destabilizes. it seems reasonable that the two ( Oil , BTC ) assets’ price movements would only be marginally related:

why?

1- oil is becoming ever more connected with the demand side of the global economy (demand: China.
Production: Iraq, Iran, Saudi Arabia...) .

2- Bitcoin was originally developed (partly) as a response to the US government's manipulation of the money supply ( United States).

The production of oil has become greater in recent years and the availability of an increasing supply of oil puts downward pressure on the commodity. In contrast, Bitcoin’s supply is fixed. It will never have ups and downs in discovery of new product. This certainty explains perhaps some of the divergence between the two prices at certain times.

Source:

https://www.swissbullion.eu/en/posts/doe...
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