Bitcoin holds $ 7,000, China’s economy is shrinking and oil at it’s lowest since 1987

Anyone who could ever come up with the above title before the global outbreak of Covid-19 would have probably been declared crazy, but this is indeed the state of the world economy at the moment.

The European and American stock markets are experiencing a revival that many believe is too early, the Chinese economy is shrinking, oil is falling and the crypto world is almost on a profit for 2020.

What does this all mean? Allow us to explain it to you.

Bitcoin holds $ 7,000

Bitcoin, still the most famous cryptocurrency and therefore the one in the spotlight, is increasingly hanging around $ 7,000, just about its starting point for the year. The crypto market revived after the mid-March crash when European lockdowns started, and media coverage is also increasing in the global press.

Especially the message this week that Facebook wants to restart its crypto Libra again (and wants to roll out globally by the end of this year) is very good news.

Chinese economy is shrinking sharply

The Coronavirus pandemic, meanwhile, has dragged the Chinese economy into its worst three-month period in many decades and the road to recovery is likely to be long. But unlike its Western counterparts, the country may see some growth this year, analysts predict.

The world’s second-largest economy contracted by 6.8% in the first quarter of 2020 compared to a year earlier, according to government statistics released Friday. That is slightly worse than analysts expected and represents a loss of $ 98 billion in lost production.

Oil to $ 10 a barrel?

Oil, meanwhile, fell further from its recent low price, mainly due to the fact that Europeans and Americans are still in lockdowns, resulting in less demand for kerosene and fuel for cars.

On Friday, oil fell to $ 18 a barrel, the lowest level since 1987, the year of one of the last major stock market crashes of the twentieth century.

Many are now wondering if Trump’s prediction will come true.

In early April 2020, US President Trump hinted at one of his daily press conferences on the state of Covid-19 in his country that oil could go as low as $ 10 a barrel.

“Look, it’s 22 dollars, but it’s really much cheaper than that if you want to negotiate — nobody’s seen that. That’s like from the 1950s, it really is — to think that it was 50, 60, 70, 80 dollars — and now it’s 22 dollars, but you know, if you put a good bid in at $9, I think you could probably get what you wanted, right?”

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