News of the Covid-19 Omicron variant, which was first identified in South Africa but has since been detected in many other countries, including the U.S., has battered stocks and cryptocurrencies in recent days.
Although Bitcoin is up a whopping 203% year over year, as of Thursday morning, it was trading below $57,000 — a more than 2.6% dip. Ethereum has also taken a hit and is down more than 4% as of this morning.
Last week, Bitcoin fell below $54,000 several times, which is the lowest it’s been since the beginning of October. The price fluctuated between $53,000-$55,000 over the weekend, then rose above $58,000 on Tuesday before declining again.
Bitcoin reached an all-time high of $68,000 on November 10, and some attribute its ensuing decrease to a $1.2 trillion infrastructure bill President Joe Biden signed on November 15, as the new legislation could have tax implications for crypto investors. But the continued volatility has been more widely linked to the uncertainty surrounding the Omicron variant, throwing Bitcoin’s status as a “safe haven in trying times” into question.
Coindesk Managing Director Emily Parker told Yahoo Finance, “We saw this in 2020 when the markets crashed due to Covid, fears of Covid. Bitcoin went down with it. So Bitcoin definitely does not always act as a safe haven. And there are a lot of correlations between Bitcoin and just the traditional market.”
Despite the recent ups and downs, many experts believe Bitcoin’s price will surpass $100,000 soon, perhaps as early as next year.Internet Explorer Channel Network