Cryptocurrency update: The price of Bitcoin today, December 30, tested the $ 46,000 level as it continued to fall amid investors becoming cautious due to the newly discovered Omicron variant of Covid-19. Both the traditional and digital markets have been affected as the Omicron variant continues to dominate the world, causing lockdowns again in many countries amid quiet festivities. Bitcoin prices had previously risen this week and crossed the $ 51,000 mark after days, only to take a hit and hit the downward trajectory again as investors refrained from risk markets. This also resulted in a drop in the consolidated global cryptocurrency market, barring Tether, as all major currencies fell for the day.
At the time of writing, the price of one Bitcoin was trading at $ 46,966.71, data from global crypto tracking website CoinMarketCap showed. This dropped by 1.53 percent in the last 24 hours and by 3.14 percent in the last seven days, according to the data. Bitcoin prices have been steadily declining for the past week, rarely crossing the $ 50,000 mark due to various reasons.
Why are cryptocurrency prices falling?
Speaking about falling Bitcoin prices, Nirmal Ranga, chief revenue officer at Zebpay, said that the virus could disrupt the global supply chain, causing panic among investors. Speaking to News18.com, he said: โInvestors have become a bit cautious and are avoiding investments like cryptocurrencies due to the appearance of the Omicron variant. As the variant spreads across the globe, both traditional and crypto markets have been affected. The virus could potentially disrupt supply chains and global travel, and with several nations imposing restrictions similar to lockdowns, it could delay a global economic recovery. This fear has led to a degree of panic selling, which in turn has created downward pressure on the market. On top of that, ESG (environmental, social and governance), investment and energy use concerns have also contributed to the recent price drop seen in most major assets. "
Experts also attributed the market correction as a reason behind Bitcoin's slide despite the festive season, after it peaked months ago. โThe reason for the price drop despite the holiday season may be correlated with the market correction in which the market falls 10 percent or more. Also, liquidity often tends to move around the end of the year or the holiday season. Additionally, the disapproval of two ETFs along with the tax deadline also contributed to the price drop. Financial markets are cyclical, but I'm sure the market will stabilize eventually, "said Tarusha Mittal, a member of the Blockchain and Crypto Assets Council (BACC) and COO and co-founder of UniFarm.
However, Darshan Bathija, a member of BACC and Vauld's CEO and co-founder, said that cryptocurrency prices had little to do with the holidays. "Prices are a function of supply and demand. Currently, the demand for crypto was low because people are out on vacation. Stock trading volume is low this week due to the Christmas weekend and the upcoming New Years weekend. Business activity is likely to pick up next week when everyone has returned from vacation, "Bhathija said in a note to News18.com.
However, he said that a positive sign is that Bitcoin prices will close between 6% and 7% higher this quarter.
โAt current prices, Bitcoin will close this quarter with a gain of 6 to 7 percent and the year with a gain of 60 percent. This is a positive sign for 2022. Another factor that will help the crypto market is clarity in regulations. We look forward to more information on crypto regulations from government authorities next year. โThe government of India is ready to implement regulations regarding cryptocurrencies to curb fraud.
What's next for the crypto market?
Speaking on the current trend of the cryptocurrency market, Edul Patel, CEO and co-founder of Mudrex, said: โWe saw limited range movement across the entire cryptocurrency spectrum over the last 24 hours. The volumes traded were almost stable. Most of the major cryptocurrencies witnessed a small selloff. However, this was not a bearish momentum, but a small glimpse across the spectrum. In the absence of aggressive institutional buying, we are likely to witness such small selling sessions across the spectrum. Over the next few days, we could even see a change as the 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 if these two major crypto currencies rebound from support levels. "
The value of the global cryptocurrency market was down to $ 2.20 trillion at the time of writing, the data showed. This was down 2.36 percent over the past 24 hours. However, the total volume of crypto increased slightly to $ 95.11 billion as traders looked to sell their assets. This increased by 0.43 percent, according to data from CoinMarketCap.
โThe next few days will be crucial for us to assess which side of the market will trend, as much of it is currently moving sideways. While the macroeconomic environment regarding regulation, technology development and adoption remains positive, much of the sentiment will be driven by what the pandemic has in store for us going forward, "Ranga said of the cryptocurrency market crash. just before the start of the new year.
Read all Last News, Breaking news Y Coronavirus news here.
