The crypto market had another volatile day in the wake of the recent flash crash as Bitcoin (BTC) failed in its attempt to conquer $50K. Crypto markets volatility was also attributed to the decline in the Asian stock market during the morning hours which led to a decline of 3-10% for the top cryptocurrencies. Bitcoin (BTC) fell to a daily low of $47,281 while Ether (ETH) fell briefly below the $4,000 mark.
The crypto market now seems to be recovering again with the opening of the European markets. By late morning trade, the pan-European Stoxx 600 had gained 0.5 percent, with oil and gas companies rising 1.9 percent to lead advances, while technology stocks fell 0.6 percent, bucking the general upward trend.
The current market downtrend is primarily being influenced by the new COVID variant Omicorn and the stock market trend often flows into the crypto market as well. However, as seen during the first and second covid wave, the crypto market has surged to new highs as COVID complications grow despite an early downtrend.
Can Bitcoin End December in Green?
The crypto market registered another flash crash of 20% making it the sixth of this bull season that wiped out over $500 billion in the crypto market cap. However, the massive corrections are not new to crypto traders who have seen 70-90% crashes and the bounce back as well. The volatility that often comes to haunt the crypto traders is also the reason behind their 50-100X gains within a few months’ time.
While crypto pundits have predicted a bullish final quarter, the bearish November and December have proven otherwise. However, crypto analysts still believe that a 20-30% crash is not the end of the bull market and often refer to it as a shake-out due to over-leveraging in the market.