Markets taking a u-turn, Bitcoin falls amongst the global selloff!
Major indices dived in the previous month of November, and are still correcting. The advent of the Omicron variant and its spread in various countries has raised a global alarm.
This alarming issue has raised a caution amongst investors worldwide. As fears of another lockdown are rising, along with the concerns over many industries and sectors. Industries such as Real Estate, Travel, etc. face a serious challenge ahead of them.
Amidst this rising fear, global markets witnessed a plunge from all-time highs, adding to the fear. The rising Covid-19 cases, Omicron variant, etc. affected the nerves of global markets, leading Bitcoin to plunge over 20%.
What made Bitcoin tumble from all-time highs?
After touching an all-time high of $69,000, Bitcoin fell as low as $42,296. Also, Ethereum, the second-largest token dived more than 10% amidst this sell-off. The sell-off has made the overall crypto sector drop one-fifth of its value, to $2.2 Trillion, acc. to CoinGecko
The time is very volatile for financial markets after US job growth slowed in the report presented on Friday. Also, the US bond yield plunge last week added the fuel to the fire.
The rising Covid cases and Omicron variant has pushed investors to rethink their investments. This sell-off saw the liquidation of cryptos worth around $1 Billion.
What’s next for the financial markets and Cryptocurrency
The time is testing and uncertain as much important data is yet to surface in the coming weeks. The inflation rates, the impact of Omicron on the monetary policies, and the government’s decisions on how to tackle the same.
Analysts estimate that Bitcoin should find support in the $40,000 to $42,000 range and might rebound for a much-awaited year-end rally. If it falls further, we might see the July levels of $30,000 to $35,000 being tested.
The markets globally are headed towards a volatile week, investors are asked to remain cautious and avoid aggressive trades. Many theories are surfacing about the mother of all crashes, but no one can foresee a crash until it happens.
Rest aside, do your due diligence before making big financial decisions. It is better to wait and watch than to impulsive move and lose!