Bitcoin price was trading at over $57,000, although investors are nervous about the spread of COVID-19 omicron variant
Bitcoin price and most significant altcoins have struggled to recover from the sharp drop in Nov. This suggests that traders may be nervous about buying at current levels due to uncertainty about the newly discovered severe mutated coronavirus in South Africa. At the time of writing, BTC is changing hands at $57,372, recorded a 5% increase in the last 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price, altcoins rebound from ‘Black Friday’ plummet
According to a CryptoCompare report, Bitcoin’s assets under management decreased 9.5% to $48.70 billion in November. On the other hand, the AUM of altcoin-based crypto funds increased 5.4% to $16.60 billion.
This suggests that traders could have booked profits in Bitcoin and rotated part of that money into altcoins.
“For the first time in over six months, Thanksgiving saw over 200k unique Bitcoin circulating on its network. Then, on Black Friday, BTC’s circulation moved up even higher. The utility is the name of the game in crypto, so this increase is promising”, Santiment stated.
Bitcoin recovered some of its losses from the “Black Friday” shopping day when it declined by more than 8% following news of a new COVID-19 strain called omicron. At the time of publication, Bitcoin was trading over $57,000, up over 4.5%
The World Health Organization labeled Omicron “a variant of concern,” meaning it could be more transmissible and virulent. The U.S., among other countries, imposed travel restrictions on South African, where the variant seemed to appear first, and seven other countries in southern Africa.
The prices of most altcoins also plummeted on Friday. Ether, the second-largest cryptocurrency by market capitalization, briefly dipped below $4,000 on Friday and then again on Sunday; despite Ethereum, its underlying blockchain has reached a new milestone. Data from Dune Analytics shows that unique addresses on Ethereum – the total number of decentralized finance users on the blockchain – have broken four million in the past week (Note that a single user can have multiple addresses). At the time of publication, ether had grown to nearly $4,300.
Like traditional asset markets, the fate of the crypto market could face weeks of uncertainty as investors await the potential impact of the omicron. Bitcoin’s Fear and Greed Index, which measures market sentiment, entered “extreme fear” territory on Saturday, its lowest level since late September.
Crypto Fear & Greed Index as of Nov 29 | Source: Alternative.me
Celsius founder and CEO Alex Mashinsky is unfazed by the recent decline and views the fall as a buying opportunity. He said on Nov 28 that he had “bought almost $10m worth of Bitcoin and Ether at the current levels” as he anticipates Bitcoin to rally to $70,000. Mashinsky added that he would cut his latest purchases in half if Bitcoin breaks the support at $50,000.
If Bitcoin recovers from the current level, select altcoins may also attract investor attention.
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