A title which is of course mocking and offbeat, history to mark with a white stone a historic day: the one when the price of a barrel of oil suffered a fall so dizzying that it could have been jealous of the last of the shitcoins undergoing a good old family Pump & Dump. Save this date, it is the date when traditional capitalism demonstrated its absolute irrationality, and it is also the date from which it will become a little more complicated to criticize Bitcoin on its supposed “volatility”.
The thick leather of Bitcoin traders
The sector of trading and of investment crypto is filled with old warriors, with scarred skin and numerous scars, inherited from brutal and unexpected falls from the courts. There will always be a trader returned from everything to entrust you by fixing his glass of bad whiskey: “I was there boy. I was there on the day of the great fall of March 12, 2020 … “.
You remember ? It was barely a few weeks ago, those disastrous 24 hours during which Bitcoin (and the whole crypto market) lost 50%, faltering in the face of the COVID-19, made bloodless by a massive withdrawal of liquidity by investors who have lost all common sense.
Bitcoin fell then around 3000 dollars in the space of a few hours, he who boasted a few days before around the sunny peaks of 10,000!
And there it was hallali ! The triumphalism of classic haters at the Peter schiff made yellow smile, however that Bitcoin was – again – declared dead by the media scene, victim of his too great volatility, its lack of underlying or the fact that it did not constitute than a gigantic speculative bubble..
But since then, the queen of currencies has slowly taken on colors. Where the Dow Jones and the S & P500 only limped on a drip of trillions of dollars printed for the occasion, Bitcoin looked up without anyone’s help, slowly and surely erasing its losses. Hard Work pay off.
And there, on April 19, 2020, that happened:
The mother of all falls
Le Figaro sums up the situation: it is “never seen”, the price of a barrel of Texas crude, the famous WTI (for West Texas Intermediate), more than a listing, downright an American economic symbol for almost 2 centuries lost in a day …. more than 100% of its value!
It’s not a bug, and you read that right: at a time when market regulation is prevailing, or things seem to be under control, a value as tangible as a barrel of 159 liters of oil is able to lose all of its value, and even move into negative territory!
It was the combination of very specific circumstances against the background of the COVID-19 crisis that led to the most counter-intuitive situation: the barrel of WTI required for the sellers to pay the sellers money to the buyers …
With regard to the backdrop, it will be recalled that overproduction is currently historic, demand being non-existent. Imagine that supertankers carrying black gold are currently being asked to keep circling in the ocean, to do not add millions of barrels of crude to already saturated storage spaces.
In this extraordinary context, Tuesday came the end of the contracts for May deliveries. Problem: no more buyers on the horizon. Quickly, the sellers of WTI began to sell off their prices, going as far as offering money to the buyers to literally be kind enough to rid them of their stocks.
So we know what happens next, a steep drop, without any plateau, until you reach and then pass under the infamous bar of $ 0.00.
It will be agreed that what has just happened is an absolute epiphenomenon, only authorized by the improbable conjunction of multiple factors. However, you will now know what to say now to those who mock the sometimes turbulent behavior of Bitcoin on the markets: “Fortunately, Bitcoin is more stable than the price of oil, huh …”
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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