New COVID strain may affect crypto valuation

[paxmao]

I am observing today something similar to what happened in 2020 but at a micro-scale. The announcement of a new COVID variant that may be resistant to current vaccines has sent the Dow and the S&P down the drain, particularly airlines and other travel hospitality linked business. Zoom stocks are up, mining and raw materials down,... It looks like a repetition also in bitcoin price with a plunge that may be ongoing.

For those of you that are newer on hodling, just calm down, this is nothing new, bitcoin will be there tomorrow and, likely, rebounding after the initial collapse caused by the stop-loss orders triggering of the first days.

[1715355205]

1715355205

[Sterbens]

Some interesting facts about the Covid Variant that was deliberately made to last longer than it had to be stopped. The big impact is unstoppable while the economic improvement in every country is starting to make a lot of adjustments in the field of Online work. Here the Bitcoin investment sector as well as trading other cryptocurrencies have contributed greatly to the individual community towards surviving the wave of economic collapse, both micro and macro though. Especially if you see the US experiencing prolonged inflation until it decides to withdraw the Dollar for a while. Hoping that the withdrawal of the dollar circulation program will trigger a decrease in inflation.
As we know during the US Pandemic, printing money on a large scale.

With regards to Bitcoin, the price has recently been looking down, whether or not this has something to do with the withdrawal of the dollar in the market or it was pre-planned to give the whales room to take more discounts.

[NeuroticFish]

I would also add that this overlaps with the day CME Bitcoin futures expire, hence one of the days the price drops anyway.
The fear related to COVID and that fall of stocks has probably amplified today's dump.

[Alanaz]

interestingly things like this always happen at the end of the year which is like being one of the secret weapons at the end of the year.
and if you look not only this year but from 2 years ago there have always been things like this in the last month of the end of the year always busy with news about covid since they existed.
and the impact created is also very extraordinary for the economy today.
the impact created by this will be felt and for hodlers must be patient a little longer it seems

[magneto]

Lots of fear mongering.

I don't see how the news has anything to do with crypto valuation at all and it just seems a bit strange that BTC, which is an uncorrelated asset to most other stocks, would dump harder than even the travel sector stocks

Oh well, more time to buy up the dip

[palle11]

I thought op would have included the name of the new variant of the covid-19.
Anyway I expect the new noise about it variant to push up price again because of the fear of contact that has bedeviled covid-19 from the beginning, so many may choose to avoid contact of fiat and convert to cryptocurrency and digital too

Oh well, more time to buy up the dip

Well it is becoming a known traditional occurrence with bitcoin anytime it got to a new ATH. This can pass as more correction than a dump and buying like you suggested rightly is the best decision.

[mk4]

Lots of fear mongering.

I don't see how the news has anything to do with crypto valuation at all and it just seems a bit strange that BTC, which is an uncorrelated asset to most other stocks, would dump harder than even the travel sector stocks

Oh well, more time to buy up the dip

More of like looking at the reality of the situation rather than "feat mongering" lol. I don't get it either why a new covid strain would affect the cryptocurrency markets, but the fact is, there's a high likeliness that it indeed affected the markets in general; whether we like it or not. It already happened in 2020, so I wouldn't be surprised if it affected the markets again in the same way.

[batang_bitcoin]

Yeah, there's a likely that it's related to the new strain and there's nothing to worry as we've seen how bitcoin moved from down to the top during the months where most lockdowns were implemented. The newbies shouldn't worry on this matter as we've seen that the market became better last year and if this is going to be the same as that, then we have to wait until the expected pump might come anytime soon as it recovers. This could also be the start or sign that we may see another ATH.

[dothebeats]

Probably, since most travels are again being restricted across all parts of the globe, and that may affect global commerce and economics, too. It's not only the local markets that are affevted by this new strain, and it seems that it has breached even the cryptomarket as well. Most industries on all fronts are taking a beating, and it's not far fetched that the negativity may affect crypto.

But what's interesting though is that the sudden drop happened near the end of the year. Huge drops and pumps usually happens during this time, and once again it showed itself in a timely manner

[lixer]

For those of you that are newer on hodling, just calm down, this is nothing new, bitcoin will be there tomorrow and, likely, rebounding after the initial collapse caused by the stop-loss orders triggering of the first days.

All such negative news are always impacting new comers miserably compared to people who have been experiencing corrections and crashes time to time. If anyone who just invested into bitcoins then they must need to think about buying again at dips rather than working on stoploss levels. Bitcoin is always known for bouncing back sharply hence this new covid variant you also might get defeated by bitcoin for sure.

When people come across ups and downs more frequently then they will plan up like how how veteran bitcoiners are doing. So, corrections are always needed to have butter benefits in all means (like for existing people to buy more at dips and for new people to catch cheaper prices psychologically).

[Zilon]

I am observing today something similar to what happened in 2020 but at a micro-scale. The announcement of a new COVID variant that may be resistant to current vaccines has sent the Dow and the S&P down the drain, particularly airlines and other travel hospitality linked business. Zoom stocks are up, mining and raw materials down,... It looks like a repetition also in bitcoin price with a plunge that may be ongoing.

During the last lockdown due to the outbreak of the pandemic many businesses that required physical contact suffered losses and drop in patronage. But after the lockdown was lifted we saw newer opportunities and the internet became the saving home of many ventures. If bitcoin gets a repetition of what played out in the market in 2020 then there will be cause for panic

For those of you that are newer on hodling, just calm down, this is nothing new, bitcoin will be there tomorrow and, likely, rebounding after the initial collapse caused by the stop-loss orders triggering of the first days.

We have had bitcoin rebounce on several occasions and holders who were patient enough had cause to smile. But they truth remains everyone would not hold some just take advantage of the volatility then sell and make little profit not everyone has that patience

[qwertyup23]

Lots of fear mongering.

I don't see how the news has anything to do with crypto valuation at all and it just seems a bit strange that BTC, which is an uncorrelated asset to most other stocks, would dump harder than even the travel sector stocks

Oh well, more time to buy up the dip

More of like looking at the reality of the situation rather than "feat mongering" lol. I don't get it either why a new covid strain would affect the cryptocurrency markets, but the fact is, there's a high likeliness that it indeed affected the markets in general; whether we like it or not. It already happened in 2020, so I wouldn't be surprised if it affected the markets again in the same way.

I do think that the cryptocurrency market will not be affected that much given that most countries are prepared and have already adjusted.

With the World Health Organization announcing a new strain of virus called Omicron, which is highly transmissible that can be found in parts of Africa, there is that potential of affecting the whole market like what happened when COVID first hit the countries. The difference is, most businesses have already adjusted to the 'new norma' and people have already been vaccinated. Though a new strain may be highly transmissible, I still doubt that it will affect and impact the cryptocurrency market that much for everyone to be worried about.

[stomachgrowls]

We are almost 2 years of this pandemic but havent we able to look on what happened in the market? We've still able to grow or make this big despite of the economic condition due to covid and now we are having that new covid strain once again?

I dont see for it to be that probable on dumping or crashing out the market which it isnt really that surprising because we've seen on our very own eyes
on how this market did end up or behave during these periods.

For now lets just make out some assumption once again but since we do already have the experience then
this is something we shouldnt really worried upon.

[Hydrogen]

The announcement of a new COVID variant that may be resistant to current vaccines has sent the Dow and the S&P down the drain

I think this was the cause of the crash:

Didi shares sink on a report that Chinese regulators have asked it to delist from U.S.

GUANGZHOU, China — Shares of China’s Didi sank sharply on Friday after Bloomberg reported that Chinese regulators have asked the firm’s executives to formulate a plan to delist from the U.S.

Didi shares closed down 2.59% in the U.S. amid a wider sell-off. SoftBank shares in Japan closed down by 5%. SoftBank’s Vision Fund owned more than 20% of Didi following its U.S. listing.

Bloomberg’s report said regulators want Chinese ride-hailing giant Didi to delist from the New York Stock Exchange because of concerns about leakage of sensitive data. The news agency cited people familiar with the matter who asked not to be identified due to the sensitivity of the matter.

https://www.cnbc.com/2021/11/26/chinas-didi-asked-to-delist-from-us-softbank-shares-fall-report.html

There is concern of other chinese conglomerates like Didi choosing to delist from the US in the future.

With the motive being perhaps to insulate china's economy from US inflation and a potential future crash.

I can't claim to be an expert on Didi or what china's motives are for this move. Its a topic well worth investigating IMO for anyone interested in the topic.

[ChiBitCTy]

I thankfully had the day off of work but the markets sure didn't, and it was an ugly one. Personally I think this is a bit of overblown fears as there seems to be quite a bit of unknowns at this time.  People panic selling is certainly nothing new and like when most other times people do so, I'll be there to try and hopefully take advantage of it.  The way I see, bitcoin is simply having it's Black Friday sale ( and very possibly end up having it's Cyber Monday sale as well).  In all honesty I'm slightly concerned but we shall have to wait and see.

[mk4]

I do think that the cryptocurrency market will not be affected that much given that most countries are prepared and have already adjusted.

With the World Health Organization announcing a new strain of virus called Omicron, which is highly transmissible that can be found in parts of Africa, there is that potential of affecting the whole market like what happened when COVID first hit the countries. The difference is, most businesses have already adjusted to the 'new norma' and people have already been vaccinated. Though a new strain may be highly transmissible, I still doubt that it will affect and impact the cryptocurrency market that much for everyone to be worried about.

Mate, we just had a decent red candle across the board, as well as the U.S. stock markets. You don't need to doubt it because the news already impacted the markets lol.

And yea we can say "correlation is not causation", but it's more likely to be the actual cause.

[Gyfts]

Isn't amazing that merely the announcement of a new strain can have that drastic effect on the markets? Oil markets tanked a bit earlier too, stocks included. The strain hasn't even been confirmed to be more deadly or capable of evading vaccine induced immunity, so anyone that isn't already protected can get protected. The covid hysteria crowd can essentially manipulate the market by pushing fear such that an announcement will cause people to be on edge. Is there published data on this strain? Nope. So why is there panic? Big pharma companies are laughing to the bank.

[The Sceptical Chymist]

For those of you that are newer on hodling, just calm down, this is nothing new, bitcoin will be there tomorrow and, likely, rebounding after the initial collapse caused by the stop-loss orders triggering of the first days.

Yep, you got that right.  I wouldn't even consider the recent drop in price over the last day or so to be all that significant (probably because I've seen crazier swings before).

As far as the stock market being "down the drain" I'd say we've only got one day's worth of data on that.  Today was an ugly day in the market, but it's also the day after Thanksgiving and volume was pretty low if I'm not mistaken.  That new strain of COVID may or may not have been responsible for the drop.  I'm pretty sure it played a part, but I don't think it's the whole reason.

Speaking of variants, all I've heard is that this new one is more transmissible.  OK, so it can spread more efficiently, right?  But I've heard nothing about any increase in virulence, mortality rates, or anything that would suggest that it's going to kill more people than the previous strains.  And all the while I keep thinking to myself that this is a virus that most people recover from after a period of mild to moderate symptoms--and that the media and governments around the world just want this pandemic to keep going on and on.

I'm sick of having to wear a face mask to work and tired of vaccine mandates.  Just thought I'd add that in.

[adaseb]

Today was a pretty crazy trading day. I would of never expected it to be this severe. We had variants in the past and they were brushed off and markets kept going higher. However I don't know if its because it was a holiday and volumes were thinner but the stock markets took a huge beating, especially oil.

Oil closed the day at -13% which is crazy. So its either some over reaction, or some trailing stops hitting or some hedge funds has pretty good knowledge that the demand for oil will go down again due to people being stuck at home due to the new variant.

I think we need to wait until Monday and see how the markets behave then.

[Poker Player]

Yeah, lol, it has already affected.

Markets are very susceptible to news like this, so the decline is not surprising. We will have to see how the price behaves in the medium term, but I doubt that the drop will be as serious as in March 2020, because this time we will not be caught off guard. I do think it could affect the overall economy if it leads to more lockdowns, but I think Bitcoin is going to be a winner in the medium and long term as a safe haven.