US oil prices fell by $15 per barrel in less than two hours after reports that the G7 countries are considering withdrawing 400 million barrels from strategic reserves, causing volatility in global markets and the elimination of more than $225 million in all crypto derivatives.
Summary
- US oil prices fell by $15 per barrel in less than two hours, falling below $104.
- Crypto derivatives markets saw over $225 million in liquidation, led by Bitcoin and Ethereum.
- Bitcoin remained largely range-bound near the $67K level despite the high volatility.
The Kobeissi Letter said oil prices initially rose as much as 30% earlier in the day before the news caused a sharp pullback.
“US oil prices fell – $15/barrel in less than 2 hours, now trading below $104/barrel, with reports that the G7 countries are considering releasing 400 million barrels of crude oil reserves,” wrote Kobeissi Letter in a post on X.
Earlier, the account noted that crude is experiencing one of the largest corrections in history, after the Financial Times reported the possible release of planned reserves.
Within hours, oil prices had erased more than half of their gains for the day, falling to the $100 barrel level.
The Crypto market is witnessing a surge in currency
The volatility spread to digital asset markets, where strong traders faced liquidation.
Liquidation data shows more than $225 million was cleared across all crypto derivatives, with Bitcoin accounting for about $150 million and Ethereum about $75 million.
Most of the closings came from long positions, suggesting that traders were caught off guard by sudden large changes. Altcoins such as Solana, XRP, and Dogecoin also saw small clusters of closes as volatility spread throughout the market.
Bitcoin is always tied to the range
Despite the massive upheaval, Bitcoin remained stable.
On the 5-minute chart, Bitcoin dipped slightly to $67,000 before recovering and trading near $67,500, suggesting limited contagion from the oil market.
The muted reaction indicates that crypto traders may view the move as an asset-specific event rather than a broader risk-off signal.
Still, big sudden developments—especially those involving energy markets and global connectivity—often seep into crypto with fluctuating currencies, energy, and global risk sentiment.
For now, Bitcoin appears to be holding its range, as traditional markets digest the sharpest oil price volatility of the year.
