Bitcoin is looking weak after Monday’s big crash in the oil markets.
The top cryptocurrency by market value is changing hands near $6,820 at time of writing, having faced rejection above $7,200 yesterday., according to CoinDesk’s Bitcoin Price Index.
Bitcoin’s fall came as the price of oil, popularly known as “black gold,” tanked on oversupply fears. Notably, traders fled from the May futures contract on the West Texas Intermediate’s (WTI) crude, the main oil benchmark for North America, sending prices below zero for the first time on record.
The unprecedented sell-off has injected uncertainty into global financial markets. As a result, stocks dropped on Monday with the S&P 500 losing 1.8 percent of its value. The risk-off macro-environment has again strengthened bearish pressures for bitcoin.
“The downside in BTC is more likely attributable to losses in the equities market, which may be directly or indirectly affected by Crude prices, than the downward trend for crude directly,” said Matthew Dibb, co-founder of Stack.