A strong drop in the price of oil was reported, around 11 percent, just after Donald Trump's announcement about negotiations with Iran. Minutes before the announcement, massive bets on oil futures of more than 580 million dollars were recorded, raising doubts about possible insider trading. This has increased volatility in the markets and generated great uncertainty.
When there is a massive sell-off of oil futures, this can affect cryptocurrencies because a sharp drop in crude generates uncertainty in the global economy, decreases liquidity, and increases volatility.
Studies show that, although the correlation is not always direct, sharp changes in oil tend to propagate to cryptos, as investors tend to flee from risky assets when there are shocks in oil prices.
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