U.S. oil prices tumbled more than $225 million a barrel in crypto derivatives in less than two hours after reports of a planned release of 400 million barrels from strategic reserves planned by the G7 triggered volatility in global markets.
Conclusion
- The price of a barrel of US oil fell by 15 dollars in less than two hours and fell below 104 dollars.
- Crypto derivatives markets saw more than $225 million in liquidations, led by Bitcoin and Ethereum.
- Despite the macro volatility, Bitcoin was largely capped near the $67K level.
Oil prices initially jumped as much as 30% before the news caused a rapid reversal, the Kobeisi letter said.
“US oil prices fell $15/bbl in less than 2 hours, now trading at $104/bbl, on reports that the G7 countries are considering releasing 400 million barrels of crude,” The Kobeissi Letter wrote in a post on Page X.
Earlier, the report noted that crude oil was attempting one of the biggest swings in history after the Financial Times reported a possible release of coordinated reserves.
In a matter of hours, oil prices fell below $100 a barrel, wiping out more than half of their gains for the day.
The crypto market is seeing a liquidation boom
Volatility permeated the digital asset markets, where bullish traders faced liquidations.
Liquidation data shows that more than $225 million has been liquidated across crypto derivatives, with Bitcoin accounting for about $150 million and Ethereum about $75 million.
Most of the liquidations came from long positions that traders were taken out of by a sudden macro change. Altcoins like Solana, XRP, and Dogecoin also saw smaller liquidation clusters as volatility spread across the market.
Bitcoin remains in a range
Despite the broader macro turmoil, Bitcoin has remained relatively stable.
On the 5-minute chart, Bitcoin briefly dropped to $67,000 before recovering and trading near $67,500, indicating limited immediate contagion from the oil market shock.
The muted reaction suggests that crypto traders may view this move primarily as a commodity-specific event rather than a broader risk signal.
However, sudden macro developments, especially those involving energy markets and geopolitical alignments, often translate into crypto through changes in liquidity, leverage and global risk sentiment.
Currently, Bitcoin seems to be holding its range, even as the traditional markets perceive one of the sharpest swings in oil prices.
