New COVID strain may affect crypto valuation

[Wind_FURY]

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.

I believe not. March 2020’s crash was unexpected, and everyone panic sold, then caused billions in liquidations on its way down. It was a surprise, and unexpected. The current crashes are merely prices starting to meet resistance, and not unexpected. In fact, it’s a welcome correction.

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[kryptqnick]

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.

Honestly, I think it's just a coincidence. It's very important to distinguish causation and correlation. While it's true that the prices are down and a new strain was announced, I don't think these events are causally related. When the WHO announced the pandemic, it was a huge event and the panic clearly contributed to the drop we experienced then. But a new strain is nothing that huge to cause panic over the crypto market. What's instead happening, IMO, is the consequence of Thanksgiving and Black Friday, as well as a natural need for a correction due to the price being pretty high lately. Nothing to worry about, but no reason to believe that it's due to the new strain either.

[cheezcarls]

Ah sh*t here we go again! 2021 is about to end, but pandemic isn’t. Because of that announcement, stocks have dropped very badly. They’ve named the new variant as Omicron, which so far scientists say it’s much more worse than Delta and can spread a lot more as it has 30 mutations. However, it was yet to be determined if this variant can bypass or counter antibodies and vaccines that we have.

Although vaccines are our best defense and can prevent hospitalization, this one is really a variant of concern. I am fully vaccinated and I’m aiming for a booster shot after 6 months from the day of that dose. Ain’t confident to travel overseas because of this new variant and it may spread worldwide in no time. Blocking specific countries like South Africa, Botswana, Hong Kong, etc., isn’t enough to contain. It may be already here anytime without warning, as COVID-19 mutation keeps evolving.  

On the other hand, we’ll yep it’s a good opportunity to buy the dip.

[STT]

Over 10% moves in commodities is a normal in that they are always in potential volatile to this extent.  Leverage is normal because storing oil is costly compared to trading just the price contracts on leverage.   The bigger deal for crypto would be the dollar did not especially break upwards like it could have done.    Actually all prices are uncertain due to the holiday and this weekend, till next weekend there are too many unknowns including the nature of this variant itself.

[michellee]

I heard that the news says that the scientist found a new strain from Covid in Botswana, which they say will be more dangerous than the previous virus. But I do not search furthermore as I am not too interested in that and hope that everything will be okay.

Related to crypto, I hope that will not have a big impact on crypto and not make the price is plunge deeper. But if the price really gets the effect, I hope people can remain calm and not panic, seeing the crypto market will go down temporarily.

But it could affect the business in real life and that can impact the stock and other businesses.

[globalpain]

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.

Honestly, I think it's just a coincidence. It's very important to distinguish causation and correlation. While it's true that the prices are down and a new strain was announced, I don't think these events are causally related. When the WHO announced the pandemic, it was a huge event and the panic clearly contributed to the drop we experienced then. But a new strain is nothing that huge to cause panic over the crypto market. What's instead happening, IMO, is the consequence of Thanksgiving and Black Friday, as well as a natural need for a correction due to the price being pretty high lately. Nothing to worry about, but no reason to believe that it's due to the new strain either.

It's true that the level of panic is different from before and now society can be said to have adapted,
so it makes the crypto market less impactful,
it's better to stay calm indeed and I think this correction is a good start

[btc_angela]

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.

I believe not. March 2020’s crash was unexpected, and everyone panic sold, then caused billions in liquidations on its way down. It was a surprise, and unexpected. The current crashes are merely prices starting to meet resistance, and not unexpected. In fact, it’s a welcome correction.

Exactly, so I would say that the dip that we are witnessing might just be short term and not like in March 2020's sudden crash and everyone went into panic mode, cash out their bitcoin because they don't know what covid-19 is that time.

But since we have been living for more than a year under this new norm, I don't think we will see the same effects on the crypto market. So this will be another waiting game for most investors.

[albon]

I heard that the news says that the scientist found a new strain from Covid in Botswana, which they say will be more dangerous than the previous virus. But I do not search furthermore as I am not too interested in that and hope that everything will be okay.

Related to crypto, I hope that will not have a big impact on crypto and not make the price is plunge deeper. But if the price really gets the effect, I hope people can remain calm and not panic, seeing the crypto market will go down temporarily.

But it could affect the business in real life and that can impact the stock and other businesses.

Fortunately, cryptocurrencies were able to grow during the Corona epidemic and during the deterioration of the global economy, so I think that if a new strain of the epidemic breaks out, it will have a slight impact on the cryptocurrency market, due to the possibilities of using cryptocurrency and that payments in the crypto are considered as An effective method for transactions in order to reduce the risk of spreading the new virus, so we have to be confident in the power of crypto to overcome these epidemics.

[fiulpro]

There have been many new undocumented variants as well and am pretty sure there are many other variants to come in the future as well, this is inevitable, mutations are something natural for any virus. Therefore there might be many more ups and downs in the market as well.

But at the same time there are people who are plunging towards their investments in cryptocurrencies as well due to collapse of the whole economic situation which might not really work well but this dip might provide them an *opportunity* for sure.

This is not a probelm for long term investors. It's the probelm for short term holders.

Some news like : Mt. Gox funds might be out in the market could fuel panic in certain situations and make people cash out but it would balance itself soon because there are countries like El Salvador moving forward in a positive direction as well.

[Oceat]

I heard that the news says that the scientist found a new strain from Covid in Botswana, which they say will be more dangerous than the previous virus. But I do not search furthermore as I am not too interested in that and hope that everything will be okay.

Related to crypto, I hope that will not have a big impact on crypto and not make the price is plunge deeper. But if the price really gets the effect, I hope people can remain calm and not panic, seeing the crypto market will go down temporarily.

But it could affect the business in real life and that can impact the stock and other businesses.

Fortunately, cryptocurrencies were able to grow during the Corona epidemic and during the deterioration of the global economy, so I think that if a new strain of the epidemic breaks out, it will have a slight impact on the cryptocurrency market, due to the possibilities of using cryptocurrency and that payments in the crypto are considered as An effective method for transactions in order to reduce the risk of spreading the new virus, so we have to be confident in the power of crypto to overcome these epidemics.

If it is just an epidemic then a nation lockdown would be enough but with what's happening all around the world. I doubt if this would be just an epidemic plus crypto or Bitcoin has nothing to do with this. It's just people are overreacting to almost everything that's why it creates a fear on their mind, this is the result of overthinking into something that usually doesn't happen. If you are not new in this market you already know how the market works and the only way to handle this dip is just to hodl. And if you believe Bitcoin would break $70 pass through $100k then you should hodl and wait.

[fullhdpixel]

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.

All the market seems to be quite bearish at this time and it has been going down slowly. It was trading at above $60,000 earlier before now, but right now the market has dropped and is now at the range of $50,000. But this is not the first time that I am seeing a news that is saying that there is a new strain of covid-19, it has been a long time that this was being said, but the market kept moving pretty fine.

So, I don’t think that this time around the market is going to be affected now. If the market is going down now, then this is the time for it to go down, because it wouldn’t go up forever, there are still times that it would drop, which is why it is being said that the cryptocurrency market is a volatile market.

[paxmao]

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.

That could be a factor, but the fact that most stocks in Nasdaq and SP500 drop means that it is probably not strongly correlated to the bitcoin specific futures dates. It is worth mentioning that, contrary to other occasions, the indexes have not recovered significantly like it sometimes happens, but rather stood lower than the previous day. My understanding is that hospitality dependant companies are certainly going to be affected.

My diagnose for bitcoin, quick drop for maybe a week?

[stadus]

I would not worry about this, when covid-19 was first discovered and we don't have the vaccine yet, crypto is not affected badly, in fact, it rises while the stocks struggle. So it could be good for crypto and we should trust the experts to take care of the new vaccines that will stop the virus from spreading since they have been developing the vaccines to completely make the world back to its normal state again.

The thing is when most centralized assets are affected because people panic, crypto is always a good alternative.

[Shasha80]

I would not worry about this, when covid-19 was first discovered and we don't have the vaccine yet, crypto is not affected badly, in fact, it rises while the stocks struggle. So it could be good for crypto and we should trust the experts to take care of the new vaccines that will stop the virus from spreading since they have been developing the vaccines to completely make the world back to its normal state again.

The thing is when most centralized assets are affected because people panic, crypto is always a good alternative.

From this perspective, i can feel that bitcoin is not really going to end up into a bear trap because a new covid strain is out and it might boost the value of bitcoin again since more people will be force to stay at home again and by that time, they will start digging up for online jobs. And crypto is perfect for those who aim for profits without going outside for an income.

With this newly covid strain that will soon to explore the world again, i don't think we should be worrying again as the medical experts continue to find vaccines that can combat this covid variants. Better to stay at home and focus on crypto and make an income through online jobs.

We can see during the pandemic Bitcoin is the best performing asset, so the new covid strain won't make the Bitcoin price fall. Instead, the opposite
will happen, I predict that there will be an increase in the number of people entering the crypto world. That will push the price of Bitcoin to go much higher.
Because as you explained, there is a possibility that many people will return to their activities at home. This means that people will look for income
solutions that can be done at home, and making money through crypto will be increasingly popular. Therefore, seeing that the crypto market has not
yet recovered, I am not worried, because it will not be long before crypto will be bullish again.

[michellee]

I heard that the news says that the scientist found a new strain from Covid in Botswana, which they say will be more dangerous than the previous virus. But I do not search furthermore as I am not too interested in that and hope that everything will be okay.

Related to crypto, I hope that will not have a big impact on crypto and not make the price is plunge deeper. But if the price really gets the effect, I hope people can remain calm and not panic, seeing the crypto market will go down temporarily.

But it could affect the business in real life and that can impact the stock and other businesses.

Fortunately, cryptocurrencies were able to grow during the Corona epidemic and during the deterioration of the global economy, so I think that if a new strain of the epidemic breaks out, it will have a slight impact on the cryptocurrency market, due to the possibilities of using cryptocurrency and that payments in the crypto are considered as An effective method for transactions in order to reduce the risk of spreading the new virus, so we have to be confident in the power of crypto to overcome these epidemics.

That will depend on the type of epidemic because it will not affect crypto if it is not related to anything with crypto. But sometimes, what happens in real life can impact crypto. Crypto is not yet used as a global transaction, but digital currency is already used for the transaction with their fiat transform into digital, which is different from crypto.

If you believe in crypto, you should know how to hold your crypto and not panic, even if the price is down. To overcome these epidemics needs many things from people, the government, and all aspects.

[Leviathan.007]

A few days ago on the news, they said about the new wave of covid and the increasing number of dead people and infected by covid also the new strain as you said in the first post, this can actually affect the whole world and especially this can have bad effects of the world economy and the resulting increase of inflation rate in all over the world, here the best idea can be to start investing on assets such as gold and bitcoin and with increasing the demand in these two markets we can see fiat currencies becoming even more worthless than before.

[davis196]

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

Fear cannot be denied.It doesn't matter if we are talking about stock markets or crypto markets.The traders and investors behave the same way everywhere.When bad news hit the markets,the prices go down immediately.The panic and fear will be temporary as usual and the prices will go back to the previous levels.
Many medics are saying that the vaccines are effective enough against the new coronavirus variant.
I don't know how competent they are,but we will have to wait and see what happens.
The travel sector is in a better position,compared to 2020,due to the mass vaccination and mass testing.

[husnija]

many people see only the effects, even though it is not the absolute main cause that affects the market
Government policies in setting regulations can be the main reason for holding back while waiting for the market to recover so that it's not too risky

[Obito]

many people see only the effects, even though it is not the absolute main cause that affects the market
Government policies in setting regulations can be the main reason for holding back while waiting for the market to recover so that it's not too risky

It's not, OP is just trying to make it look like there's a connection with the new COVID strain to the dump in price just to put it together with other market. I mean when the pandemic happened, there's not that much hit in the market and in fact it flourished more than anything because people are indoors and have more time online so they are more likely to be curious with cryptocurrency.

[ReiMomo]

I dont accept that COVID strain situation would affect crypto valuation. Just check back, we had consecutive ATH of BITCOIN during only Pandemic situation  and yes still we are marching forward for its next ATH. There seems to be a usual correction which happens before a great spike and yes this is what I believe  and I have seen since 2016. We could see large number of investors have come in to Crypto platform during the COVID period.