After another Friday, another dramatic negative move for the world’s most valuable cryptocurrency, Bitcoin (BTC). As of 4:30 p.m. E.T., the corresponding tokens of Bitcoin, Ethereum, and Solana were down over 17 percent, 15 percent, and 20 percent during the preceding 24 hours of trade for the day. Concerns over the coronavirus omicron strain caused big value drops for the bulk of cryptocurrencies on Black Friday, but investors appeared to have absorbed the risk. Many of the leading cryptocurrencies have been experiencing substantial increases over the previous week, but values are once again falling in today’s trading session.
BRC/USD 1 DAY PRICE CHART – SOURCE: COINMARKETCAP.COM
Despite beginning the week with recovery momentum following previous sell-offs, both equities and cryptocurrencies fell as the week proceeded, and more volatility may be on the way. Following last week’s events (massive Black Friday sell-off is on the verge of being short-lived), many cryptocurrencies have recovered quickly. Investors appeared to disregard concerns that the omicron form might curb the bitcoin market’s positive momentum. However, as a result of the virus’s spread and the possible impact on supply chains and other sections of the economy, investors are growing more risk-averse.
ETH/USD 1 DAY PRICE CHART; SOURCE – COINMARKETCAP.COM
Treasury bond rates may be causing investors to exit riskier ventures in search of higher returns. The prospect of fresh governmental crackdowns might potentially impact bitcoin prices. China has practically prohibited cryptocurrency transactions and mining, India has just proposed laws that might prohibit all private cryptocurrencies, and the recently passed US spending package contained additional taxes for bitcoin brokers.
SOL/USD 1 DAY PRICE CHART: SOURCE- COINMARKETCAP.COM
While the recent price changes are significant in absolute terms, they appear to be pretty regular when examined from a historical perspective. The cryptocurrency market as a whole remains extremely volatile, and even Bitcoin, Ethereum, and Solana, as well as other somewhat well-established currencies, are prone to large price movements based on little or no news.