Crypto markets are in the red as global stocks look to recover following a historic drop in oil prices.
U.S. oil prices are picking an upside Tuesday after they sank below $0 on Monday. It left crude futures holders staring at unprecedented losses. Earlier, prices changed nearly $40 to spell some hope. But a slight $37.64 change (100.03% lower at 9.30 UTC April 21, 2020) means prices for the May delivery are just $0.01 per barrel.
Oil price dropped to $0 per barrel
On Monday, the West Texas Intermediate (WTI) Crude’s May futures fell 100%+ to spearhead a mauling across global stock markets. The WTI oil futures contract, which expires April 21, plunged to negative $37.63 and forced holders into a sell-off.
Before the sub-zero price crash, a lot of hope for in the oil industry rested on the deal between OPEC and Russia. The deal promised to have oil production cut by as much as 10 million barrels a day. But now that agreement set to kick in on May 1, is likely not to prevent another price drop affecting the June crude futures. According to analysts at Goldman Sachs, Monday’s “price dynamics” could still be at play this Tuesday.
Markets in Asia on Tuesday morning fell by over 2%, while the Dow Jones has shed nearly 600 points to reverse recent gains. The S&P 500 has also dropped more than 50 basis points.
Crypto markets red
The top three cryptocurrencies have all dropped between 4% and 7% on the day as other crypto tokens trade lower. Bitcoin (BTC) has dropped 4% to sink below $7,000, to trade just above $6,800 against the U.S. dollar.
Ethereum (ETH), which has had a great April so far, has seen its price drop by over 5%. The world’s second-largest crypto by market cap had earlier fallen to a daily low of $168. A slight upside saw it break above $170 to leave it close to 10% in the green over the last week. The coin is currently exchanging hands around $173.
XRP has lost 4.3% of its value on the day and is now priced at around $0.18 on exchanges. Similar loses are being witnessed in other altcoin markets: Bitcoin Cash (BCH) -6.7% at $219; Litecoin (LTC) -5.1% at around $40 and Tezos (XTZ) -7.5% at $2.19.
Overall, Bitcoin’s market dominance is now at 64% while the global market capitalization for cryptocurrencies now stands at $199 billion.
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