When it comes to markets, a bull run means we should see the price of an asset go up; this is what was predicted for Bitcoin with some pundits claiming it’ll reach $100,000 by the end of the year. While this could still happen, the market has other ideas right now as the price just tumbled more than 10%, according to CNBC, bringing the price of Bitcoin down to just $43,000.
Correlated closely to the movements of Bitcoin is the world’s second-largest crypto, Ether (which runs on the Ethereum network). Ether fell more than 10% hitting $3,500 before making a bit of a comeback. When prices hit lows like this, traders who believe the prices won’t go much lower buy in hoping to see the prices rise again at which point they can sell off their assets when they think the time is right.
An interesting trait of cryptocurrencies is that they seem to follow stocks and shares markets. Many of these have been in the red due to fears around the property firm Evergrande and that the Omicron variant of COVID-19 could lead to more lockdowns which would reduce footfall in shops. These fears have come to fruition in Austria already where unvaccinated people have been placed in lockdown since mid-November.
At its height, Bitcoin reached a whopping $69,000 per coin in early November before fears set in over the new COVID-19 variant.
El Salvador just bought the dip! 🇸🇻— Nayib Bukele 🇸🇻 (@nayibbukele) December 4, 2021
150 coins at an average USD price of ~$48,670 🥳#Bitcoin🎄
While the price of Bitcoin has fallen hard, some remain bullish including President Nayib Bukele of El Salvador who just announced that the country had ‘bought the dip’. In the latest procurement, the country added 150 Bitcoin to its reserves. In response to his Tweet, Bukele revealed the country had ‘Missed the f***ing bottom by 7 minutes’.