Bitcoin suffers 20% drop in just one day: Omicron variant makes crypto market nervous

Bitcoin loses value overnight as concerns about the Omicron variant heighten nervousness in the global market. 

The beginning of the pandemic more than a year ago meant the closure of many companies and small businesses, affecting the global economy like never before. With the new Omicron variant , these concerns are coming back to the fore and is making several investors nervous.

This Saturday, Bitcoin , the most famous cryptocurrency , plummeted to a low of around $ 42,000 overnight. This is a 26% reduction from a value of $ 57,000 yesterday morning, and despite rising to $ 47,000 later , it still means a 17 percent drop .

If the largest cryptocurrency falls, so do the others. Ethereum , the second most famous token, fell 17.4% before trimming the retracement to 10%. The crypto sector has lost around $ 2.2 trillion , according to CoinGecko .

This decline in cryptocurrencies amid a volatile period for financial markets. The Omicron variant causes nervousness and concern about possible delays for the global economic reopening. However, the volatility of cryptocurrencies can be taken advantage of.

“Fluctuations in the market value of cryptocurrencies are nothing new. Short-term volatility generates panic in certain users – who sell their cryptocurrencies out of desperation; or it is seen as a buying opportunity.” Carlos Bernos, country manager of Buda.com tells NIUSGEEK.

This same volatility of the crypto market is being taken advantage of by the president of El Salvador, Nayib Bukele, who has bought 150 coins. This year, the Central American nation adopted Bitcoin as legal tender.

“After a year with signs of greater institutional support for Bitcoin (El Salvador, ETFs on the New York Stock Exchange, Bitcoin City), these types of short-term fluctuations do not represent a setback, since its technological value still has a lot of potential to be developed. “, adds Bernos.