Oil prices are collapsing! Bitcoin crashes to $8,000, will black swans continue to happen?

Beijing time, March 9th, affected by the COVID-19 pandemic and the unsuccessful negotiations between oil-producing countries, the global economy suffered another severe blow. In overnight trading on Sunday, U.S. stock index futures fell sharply. At the same time, Middle East stock markets plummeted and international oil prices collapsed. Brent crude oil futures fell by more than 30% at one point, with the lowest price of the day hitting $31.38 per barrel.

Bitcoin, which is regarded by some as "digital gold", was not spared. According to data provided by qkl123.com, in the past 24 hours, Bitcoin fell from a high of US$8,800 to a low of US$8,000, a drop of nearly 9%. Most of the top 10 cryptocurrency assets by market value fell by more than 10%.

According to the data provided by Coin, the total liquidation of the contract market in the past 24 hours was US$507 million, and the number of liquidations reached 36,536. The largest single liquidation occurred on Bitmex, with a value of US$8.48 million. Among the currencies with the highest liquidation amounts, BTC liquidated US$310 million, ETH liquidated US$67.98 million, BCH liquidated US$36.51 million, EOS liquidated US$35.32 million, and BSV liquidated US$14.63 million.

The market crash has obviously caused some participants to fall into panic. In fact, some people believe that the cryptocurrency market is on the road to entering a bear market phase again.

For example, gold enthusiast Peter Schiff commented:

“This crash is not surprising. I warned several times last week that Bitcoin’s failure to rebound under the most ideal conditions means that a crash is coming! Of course, this is not a crash yet. A crash means we will see $3,000 Bitcoin.”

In the face of the plummeting market, Bitcoin Milk King Pomp commented:

“Someone tell the Bitcoin critics that oil dropped more than Bitcoin in a single day. The market is too volatile!”

Despite this, there are still many voices in the market that are optimistic about Bitcoin, and they are based on an analysis model called stock-to-flow. Its inventor PlanB commented:

“#bitcoin S2F chart adjusted for today’s “crash”, nothing really happened, Bitcoin still on S2F track.”

He then added that tomorrow’s Bitcoin difficulty adjustment (the time between blocks remains within 10 minutes regardless of computing power) will be a huge 7%! He believes that there are no signs of weakness in the two months before the halving.

It is reported that PlanB had previously tweeted a prediction that it would be difficult for Bitcoin to fall below $8,200.

Another well-known Bitcoin bull, Hodlonaut, commented:

“We are entering a period of extreme volatility and fear in global markets. Bitcoin will be here, producing blocks every 10 minutes, and when the dust settles, Bitcoin will prove itself in a whole new way.”

As of press time, the price of Bitcoin rebounded slightly to US$8,086, and the USDT over-the-counter price was 7.15 yuan. The current premium rate has climbed to 3.13%.

What do you think about this market trend?