Cryptocurrency Update: Bitcoin price as of today, Dec. 30, tested the $46,000 level as it continued to fall as investors became cautious due to the newly discovered Omicron variant of Covid-19. Both traditional and digital markets have taken a beating as the Omicron variant continues to rule the world, triggering renewed lockdowns in many countries amid muted festivities. Bitcoin prices had surged earlier this week, crossing $51,000 after days, only to take a hit and go back on the downward trajectory as investors shrugged off the risk markets. This also resulted in a decline in the consolidated global cryptocurrency market with the exception of Tether as all major coins fell during the day.
At the time of writing this article, the price of one Bitcoin was trading at $46,966.71, data from global crypto tracking website CoinMarketCap showed. According to data, it fell by 1.53 percent in the past 24 hours and by 3.14 percent in the past seven days. Bitcoin prices have been falling continuously over the past week, rarely exceeding $50,000 for a number of reasons.
Why are the prices of crypto coins falling?
Speaking about the fall in Bitcoin prices, Nirmal Ranga, chief revenue officer at Zebpay, said the virus could disrupt the global supply chain, sparking investor panic. Speaking to News18.com, he said: “Investors have become a bit cautious and shy from investments such as cryptocurrencies due to the rise of the Omicron variant. As the variant spreads around the world, both traditional and crypto markets are taking a hit. The virus could potentially disrupt supply chains and global travel, and with several countries imposing lockdown-like restrictions, it could slow a global economic recovery.This fear has sparked some panic selling, which in turn put downward pressure on the market. In addition, environmental, social and governance (ESG), investments and concerns about energy consumption have also contributed to the recent drop in prices of most major assets.”
Experts also attributed market correction as a reason behind Bitcoin’s fall, despite the holiday season, after it peaked months ago. “The reason behind the price drop despite the holiday season can be correlated with the market correction where the market goes down 10 percent or more. In addition, liquidity often tends to move around the end of the year or the holiday season. two ETF disapprovals along with the tax deadline add up to the price drop. Financial markets are cyclical, but I’m sure the market will stabilize eventually,” said Tarusha Mittal, Blockchain and Crypto Assets Council (BACC) member and COO and co-founder of UniFarm.
However, Darshan Bathija, who is a member of BACC and the CEO and co-founder of Vauld, said cryptocurrency prices had little to do with festivities. “Prices are a function of supply and demand. Currently, demand for crypto has been low as people are away for the holidays. The trading volume of the stock exchanges is low this week due to the Christmas weekend and the upcoming New Year’s weekend. Trading activity is likely to recover next week when everyone is back from the holidays,” Bhathija said in a note to News18.com.
However, he said a positive sign is that Bitcoin prices will close 6 to 7 percent higher this quarter.
“At current prices, Bitcoin will close this quarter with a gain of 6-7 percent and the year with a gain of 60 percent. This is a positive sign towards 2022. Another factor that will help the crypto market is regulatory clarity. We expect more information on crypto regulations from government agencies next year.” The Indian government plans to release regulations related to cryptocurrencies to curb fraud.
What’s next for the crypto market?
Speaking about the current trend in the cryptocurrency market, Edul Patel, CEO and co-founder of Mudrex said, “We have seen range-bound movement across the cryptocurrency spectrum over the past 24 hours. Volumes traded have remained virtually stable. Most of the best cryptocurrencies witnessed a sell-off. However, this was not bearish momentum, just a small hiccup across the spectrum. In the absence of aggressive institutional buying, we are likely to witness such small sell-offs across the spectrum. In the coming days We could even see a reversal as bulls would try to buy the dip. The support level for bitcoin is $46,000 and $3,600 for Ether. We are likely to witness a reversal as these two major cryptocurrencies bounce back from support levels.”
The value of the global cryptocurrency market dropped to $2.20 trillion at the time of writing this article, data shows. This was a 2.36 percent drop in the past 24 hours. However, the total crypto volume rose slightly to $95.11 billion as traders wanted to sell their assets. This was up 0.43 percent, according to data on CoinMarketCap.
“The next few days will be crucial for us to be able to assess which way the market will move as there is a lot of sideways moving at the moment. While the macroeconomic environment related to regulation, technology development and adoption remains positive, much of the sentiment will be determined by what the pandemic has in store for us going forward,” Ranga said of the declining crypto market just before the end of the year. beginning of the New Year.
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