Bitcoin just had its biggest plunge since May 2020. During the weekend, Bitcoin continued to trade downward and even declined to as low as $41,900. More than $1 billion was wiped off in the market. Altcoins also traded lower in tandem and ETH shed almost 20% of its value.

Analysts believed some of the reasons behind the decline were the new COVID variant, Fed’s concern with the high inflation rate which might drive it to curb stimulus, and the crisis of China real-estate giant Evergrande.

In fact, not only the crypto market but also the stock markets suffered from market angst. The sell-off may also come from investors who want to lock in a profit before the end of 2021.

What happens now?

While most analysts uphold the idea that Bitcoin could explode in 2022, it is too early to tell where Bitcoin will head in the short term. Here are some important events that could determine bitcoin’s action in the coming weeks.

Omicron variant remains the most-watched factor

To date, there are more than 40 countries that have detected cases caused by the Omicron variant. While scientists are still working to see if they could discern more information, all the reported cases now are only showing mild symptoms, which is small comfort. But it is clear that the new variant is more contagious than Delta. Public-health officials said that they might work on the approval of Omicron-specific vaccines if needed. It is advised that investors should watch closely for any news regarding covid.

Could Congress inject more liquidity into markets?

Congress will decide in the…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.