Bitcoin Rallies to $58,000 Despite COVID Fears
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Bitcoin Rallies to $58,000 Despite COVID Fears

8 months ago

The world's biggest cryptocurrency began ticking higher in the run-up to the weekly close, and CoinMarketCap data shows BTC ended the latest seven-day period at about $57,250.

Bitcoin Rallies to $58,000 Despite COVID Fears

Daftar Isi

Bitcoin has shrugged off concerns about a newly identified coronavirus variant — rallying from $53,800 to $58,000 in a matter of hours.
The world's biggest cryptocurrency began ticking higher in the run-up to the weekly close, and CoinMarketCap data shows BTC ended the latest seven-day period at about $57,250.
BTC's price remained above $57,000 for most of Monday morning — with European stock markets rebounding despite concerns over the Omicron variant.
As of 10am U.K. time on Monday morning, the FTSE 100 index in London was up 0.84% in intraday trading, while Germany's DAX was up 0.45%. Over in the U.S., S&P and Dow futures have also risen.

It may take several weeks for health officials to learn more about the Omicron variant. We don't know whether it is more transmissible than previous strains, whether it causes more severe illness, or whether its mutations deliver greater levels of resistance to COVID-19 vaccines.

There are fears that, if Omicron is as bad as first feared, lockdown restrictions could be reinforced, and the global economy could be plunged into fresh uncertainty.

However, the likes of Pfizer and Moderna have expressed confidence that COVID-19 vaccines can be modified to offer greater protection against Omicron within a matter of weeks, subject to regulatory approval. 

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What Omicron Means for Bitcoin

Bitcoin has increasingly shown a close correlation to the stock markets in recent weeks — meaning the world's biggest cryptocurrency could be subject to painful sell-offs in response to negative pandemic news.

But there is increasing speculation that Omicron's arrival could prompt central banks to delay plans to increase interest rates — and this may result in BTC being regarded as more attractive in the medium term.

Crypto analysts have welcomed Bitcoin's recovery from the $53,000 zone, but remain cautious about what lies ahead in the coming days.
Blockware's lead insights analyst Will Clemente said Bitcoin's bounce was "nearly textbook," but he cautioned that the digital asset still needs to reclaim $61,000 in order to retain momentum. Such a level has proven elusive in recent weeks. He cautioned:

"Definitely not out of the woods yet." 

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