The drop in oil prices is now negatively impacting the stock market, leading crypto investors to worry about the future of Bitcoin price.
The shockwaves from yesterday’s explosion in the oil markets continued to damage oil prices and shrapnel from the blast caused damage to equities today as U.S. markets closed in the red after a nearly 3-week rebound.
West Texas Intermediate crude closed down 9.49% at $9.06, and June 2020 futures dropped from $22.58 to $13.12. What is clear is that investors remain fearful about the future of the entire industry as the coronavirus pandemic continues to dampen demand for oil.
Is it over for stocks?
Before the start of this week the S&P 500 and Dow had recovered approximately 30% of the losses from the Feb. 20 correction which quickly brought markets to historic lows. As shown on the 3-day chart below, the S&P 500 had rallied within a hair of the 61.8% Fibonacci retracement level, a point which many analysts forecast would be challenging to overcome.
Rejection at this level is likely to crush the narrative of a V-shaped recovery like the one witnessed in late December 2018.
