Bitcoin is the world’s largest and most popular cryptocurrency. However, over the past few weeks, it has been in quite a slump, dragging the rest of the altcoin market along with it. Bitcoin’s popularity makes it a clear maker of how cryptocurrency is doing.
Following the crypto rally that made prices surge to new all-time highs, the market entered a bearish trend. Until last week it was showing major drops in prices and people entered in panic buys.
The status of crypto has been pretty chaotic ever since the pandemic struck, in fact, many people even started wondering if crypto has lost its charm.
However, this was before the crypto rally. The start of November brought in new potential in the market, but with this sudden bearish trend, people have started to question their investments again.
Bitcoin Making Recovery
However, it’s no time to lose hope as there are clear signs of recovery. As seen on Monday, Bitcoin recovered after losing around 8% on Black Friday.
The drops of Black Friday were the result of news surrounding Onicoron, the new Corona Virus variant that is raising havoc in South Africa and Hong Kong. The variant was discovered by South African scientists and it is claimed that the vaccines are only about 40% effective on this variant.
price was up over 5 per cent at $57,230 (over Rs 43 lakhs) at 10:50 am IST Monday, fighting the bullish momentum that was reining in the market from the past two weeks.
Bitcoin failed to retest $60,000 last week due to continued strength in the US dollar. Additionally, people are questioning their investments as the Federal Reserve hinted at tapering bond reserves which is making Bitcoin a less attractive asset.
The announcement of Onicoron by WHO is the last blow. People fear another slump in the economy and are thus are ready to withdraw their investment
The news of Omnicoron has ruined all hope for economic recovery and return to normal life in 2022. All that we can hope is that this time better actions are taken by the government in managing the crisis.
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