U.S. oil prices plunged $15 per barrel in less than two hours after reports that G7 countries are considering releasing 400 million barrels from strategic reserves, triggering volatility across global markets and over $225 million in liquidations across crypto derivatives.
Summary
- U.S. oil prices fell $15 per barrel in under two hours, dropping below $104.
- Crypto derivatives markets saw over $225 million in liquidations, led by Bitcoin and Ethereum.
- Bitcoin remained largely range-bound near the $67K level despite the macro volatility.
The Kobeissi Letter said oil prices initially surged as much as 30% earlier in the day before the news triggered a rapid reversal.
“US oil prices fall -$15/barrel in under 2 hours, now trading below $104/barrel, on reports that G7 countries are considering releasing 400 million barrels of crude oil reserves,” The Kobeissi Letter wrote in a post on X.
Earlier, the account noted that crude was attempting one of the biggest reversals in history, after the Financial Times reported the potential coordinated reserve release.
Within hours, oil prices had erased more than half of their gains for the day, falling toward the $100 per barrel level.
Crypto market sees liquidations spike
The volatility spilled into digital asset markets, where leveraged traders faced liquidations.
Liquidation data shows more than $225 million wiped out across crypto derivatives, with Bitcoin accounting for roughly $150 million and Ethereum about $75 million.
The majority of liquidations came from long positions, suggesting traders were caught off guard by the sudden macro shift. Altcoins such as Solana, XRP, and Dogecoin also saw smaller liquidation clusters as volatility spread across the market.
Bitcoin remains range-bound
Despite the broader macro turbulence, Bitcoin remained relatively stable.
On the 5-minute chart, Bitcoin briefly dipped toward $67,000 before recovering and trading near $67,500, suggesting limited immediate contagion from the oil market shock.
The muted reaction indicates crypto traders may be viewing the move primarily as a commodity-specific event rather than a broader risk-off signal.
Still, sudden macro developments—particularly those involving energy markets and geopolitical coordination—often ripple into crypto through shifts in liquidity, leverage, and global risk sentiment.
For now, Bitcoin appears to be holding its range, even as traditional markets digest one of the sharpest oil price swings of the year.
