Bitcoin has its price navigating the $46,900 levels at the moment. The coin has suffered bearishness, losing 1.53% within the past 24 hours.
Bitcoin touched the $46,000 level today, December 30, amid a continued fall triggered by investor fear that resulted from the new COVID-19 variant, Omicron. The digital and traditional markets have experienced challenged as the newly discovered virus led to lockdowns in various nations and muted festive seasons.
Bitcoin rose early on the week to cross the $51,000 level. However, the largest cryptocurrency by value took a bow, venturing into downward trajectories as market participants escape risk assets. The overall crypto market reflected Bitcoin’s downbeat as the top token traded deep in the red.
While publishing this content, Bitcoin battled with lows around the $46,900 mark (Coinmarketcap data). That translated to a 1.53% lows within a day and a 3.14% drop in seven days. Bitcoin had its prices dropping since last week, occasionally crossing $50,000 for various reasons.
Why Digital Coins Are Dropping
ZebPay’s chief revenue officer Nirmal Ranga commented on Bitcoin’s falling prices, stating that the virus disrupted the worldwide supply chain, leading to panic. Ranga told News18.com that investors are cautious and are avoiding investments like cryptos because of the Omicron strain.
The virus can trigger global lockdowns and various restrictions, delaying global market recovery. The resultant fear led to panic selling, adding downward pressure on cryptocurrencies. Ranga said that Environmental, Social, and Governance (ESG) energy usage concerns contributed to the latest crash in the crypto space.
Experts pointed that market retracements also led to BTC’s price fall amid the festive season. UniFarm co-founder Tarush Mitta; believes the corrections that had the market losing more than 10% of value are behind the falling prices. He also said that the two ETF disapproval and tax deadline contributed to the price crashes.
What Next for Cryptocurrencies?
Mudrex’s Edu Patel remains optimistic. He said that the crypto spectrum flashed range-bound movements over the past day, with traded volumes remaining almost unchanged.
Patel said the current crypto sell-off is not a bearish momentum, saying the situation may shift in the coming days as bulls would try to purchase the dip. Bitcoin’s support stood at $4600, while Ether’s at $3,600. Patel explained that a bounce from these supports can mean bullish reversals in the crypto field.