1:37 AMHow does the rate of bitcoin depend on the rise in the dollar against the ruble?
On March 23, the ruble fell again and reached 81 rubles for 1 dollar. Euro costs 87 rubles. The Moscow Stock Exchange index fell by 4% after the collapse of world stock indices and oil prices to $ 25.7. The cryptocurrency market also decreased activity - the level of capitalization fell by 7% to $ 164 billion, and the cost of the main digital currency fell to $ 5,800.
Depreciation of oil is a predictable event. At the same time, limited air traffic and border closures caused a surplus of “black gold” in the market, explained Yuri Mazur, head of analysis at Cex.io Broker. In the coming years, further decline in the price of black gold to $ 20 is not excluded, the expert suggests.
Last time, when oil showed the most significant decline over the past 30 years and collapsed to $ 31, the value of bitcoin also fell to the minimum limits of $ 3,800. In two weeks, the cost of the main cryptocurrency fell by more than half. At that time, the ruble continued to decline to the values of 2014, when the currency crisis was rampant in our country.
The deterioration of the situation with oil and the Russian ruble will affect the cryptocurrency market. There is a direct relationship between them, says Yegor Klopenko, founder of ITLeaders venture capital club and Klopenko Group, a consulting company. He explained that every crisis causes investors to get rid of risky assets. First of all, stock markets in developing countries suffer - this is demonstrated by the Russian stock market.
Klopenko noted that cryptocurrency is one of the most illiquid assets in the world, therefore its fall is quite predictable, and it should be larger in comparison with fiat currencies.
The BTC and the S&P 500 index reached a high correlation. Recently, quotes have changed almost simultaneously, which indicates that with the stabilization of the stock market, the main cryptocurrency will rise in price.
Vladimir Annikov, the head of the corporate-legal unit of the European Legal Service, is inclined to this scenario. He believes that when the situation in global markets calms down, the cryptocurrency market growth resumes, the Russian ruble stabilizes, and the sale of stock derivatives ceases.
Yuri Mazur also announces a future cryptocurrency appreciation. He believes that retail investors are now buying low-cost cryptocurrencies, and this will lead to a gradual recovery in value. At the moment, the cryptocurrency market is highly dependent on the situation in the world, so it can only strengthen if the crisis and pandemic decline.
Philip Salter, the chief operating officer of Genesis Mining, thinks differently. He said that the economic crisis will provoke an increase in user interest in cryptocurrencies. Bitcoin will act as a risk hedging tool, which will increase its price.
At the moment, the more expected scenario is that cryptocurrencies will depend on the cost of oil and the stock market. Thus, it is possible that the value of tokens will move up when investors again begin to take risks, withdrawing funds from defensive assets.
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