The whole world has seen that COVID-19 crisis-affected everything. From fiat currency to commodities and the digital coins were affected by the coronavirus crisis in 2020. Now, the time is about to come back. According to well-acknowledged experts, cryptocurrencies are experiencing a decline in prices because of discovering a new mutant of COVID.
Bitcoin on Friday experienced a drop of 7.8% and reached $54,377 after the discovery of the mutant virus. From the experts’ reports, it is the lowest price after October 12 this year, and it is expected to fall further due to the discovery of this mutant virus which is immune to vaccine resistance.
Due to the discovery of the COVID variant, the investors saw a risk in cryptocurrency. Due to the overall fall, the riskier cryptocurrencies are expected to decrease. Therefore people started to withdraw their money out of it.
Also, the main reason for withdrawing any from cryptocurrencies like bitcoin was to stay safe with the bond. Some of the most popular yield bonds in which most people prefer investing money are the yen and the United States dollars. As it is the most popular cryptocurrency globally, bitcoin experienced a massive impact of this discovery recently.
It has reached its lowest price after October 12, 2021, and also, the 7.8% decrease in price is the most significant one-day drop after September 20, 2021. By reaching the price of about $54,377, bitcoin has reached one by a fifth of its total value. It was near $70,000 at the beginning of November 2021. 2021 has been an incredible as well as a terrible year for bitcoin.
The bitcoin prices started to increase at the beginning of this year and reached their all-time highest price of $69,000. After that, some market forces worked against bitcoin, and its prices started to decline again.
About Covid and its variant
In 2020, the COVID-19 crisis hit the whole world. Not only the fiat currencies and commodities but also the cryptocurrencies experience the impact of the COVID-19 crisis. It slowed down the global economy, and the activities which were necessary for the working of the economy started to slow down. It became one of the most prominent reasons because of which the cryptocurrency market significantly decreased. People were scared of investing money in bitcoins because of the uncertain future.
Back in 2020, the coronavirus was fatal for people and caused the death of thousands across nations. Now, according to the experts, it is about to happen again. Scientists have discovered a new variant of coronavirus in South Africa, Botswana, and also Hong Kong. This variant is considered to be different from the earlier ones. It is a combination of different mutants and can also evade the immunity system of anyone who has already taken the vaccine. Also, the combination of different mutations is expected to be more transportable than any other variant that came earlier last year.
The WHO is working to contain the spread of the new mutant of COVID to different countries and could open a new gateway towards the destruction of cryptocurrencies. Furthermore, it will wither investors’ appetite, and therefore, it is likely to affect the cryptocurrency market to a large extent. Also, the upside of bitcoin will be limited because of the discovery of this new variant. Therefore, the cryptocurrency market has to be very well prepared for the further losses that are about to occur because of the future expected COVID problem.
What happened recently?
Earlier this month, bitcoin reached its all-time high price of $69,000. Also, it was embraced by many huge investors across the globe, and therefore, it was very much supported by different analysts because of its inflation-resistant qualities. Also, some investors have piled up more bitcoin because it is expected to get them promising gains in the future. As a result, huge investors’ more significant accumulation of bitcoins makes the cryptocurrency supply in the market lower than usual. Therefore, at that time, bitcoin was holding a significant position in the market with the highest market capitalization value.
Also, the crypto engine did not compromise with its volatile nature and kept on fluctuating every day. Because of the volatility, some investors are confused about whether it will maintain its store of value or not. Because of the fall in bitcoin prices, which is the most popular cryptocurrency globally, the smaller coins with lower market capitalization value also experienced a decrease in their prices. The second highest market capitalization holder, tedium, decreased as much as 11.6% and reached $4070.