Low oil prices affected the cryptocurrency market

This phenomenon caused the capitalization and total value of digital assets to fall from 248,693 million dollars to 221,116 million in just 24 hours

The decline in the oil market caused the capitalization of cryptocurrencies to have a considerable drop in just 24 hours.

As detailed, the value of digital assets went from 248,693 million dollars to 221,116 million, representing a fall of 27,583 million.

As the hours went by, more consequences were observed such as the case of bitcoin, which lost 10% of its value in 24 hours.

The violent sale in the cryptocurrency market came after Brent crude, an international oil reference, fell 30% to reach USD 31.02 per barrel, its lowest level since February 2016. This was caused since Saudi Arabia cut its official prices after OPEC failed to reach an agreement on production cuts.

On the other hand, other digital assets such as ethereum, xrp and bitcoin cash presented double digit losses as well.

Jehan Chu, co-founder of Kenetic Capital, and an investor in blockchain companies, told CNBC: “For those who have long-term investments, bitcoin is absolutely a purchase during these declines. We can expect more from this volatility caused by the health macro and financial shocks, but ultimately, long-term investments in the future, digital and its key asset, bitcoin, will be a winning strategy”, Chu said.

K. Tovar

Source: News Agencies

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