Cryptocurrencies recover with BTC trading above $57,500
04:35, 29 November 2021
Bitcoin and altcoins staged a recovery in early Asia trade on Monday, after last week’s global sell-off in risk assets on concerns over the new Omicron Covid-19 variant.
Bitcoin rose more than 6% over the past 24 hours to hover above the $57,500 mark. The bellwether cryptocurrency took its seven-day gains into the positive territory, up 0.1% in early Asia trade on Monday.
Number two cryptocurrency ether jumped 7.8% to $4,337 on Monday. Ether has gained nearly 4% in the past seven days, according to CoinMarketCap.
The Crypto Fear & Greed index stood at 33 points indicating a “fear” sentiment among investors. A reading of zero on the meter means “Extreme Fear” while 100 means “Extreme Greed.”
On Saturday, the Crypto Fear & Greed index fell to a reading of 21 points, as Bitcoin prices fell to a low of $53,642.
Global stock markets and cryptocurrencies fell on Friday after the World Health Organization flagged the risks of the latest Covid-19 variant named “Omicron”, which was first detected in South Africa.
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Altcoins post gains in early Asia trade
“In recent weeks we’ve seen that, in times of real uncertainty, bitcoin has not done well as an inflation hedge or a safe haven asset. There’s no doubt it’s a fascinating tradable instrument and a highly speculative one, but it’s quite clear now that it’s a risk asset and nothing more. Not at the moment anyway. Who knows what the future holds,” said Craig Erlam, senior market analyst at brokerage firm Oanda.
“If this new variant triggers major risk aversion in the markets, it (Bitcoin) could come under serious pressure. Unless of course, the inflation narrative catches again. No sign of it yet but, as ever with crypto, it has an incredible ability to find the bullish case in anything. Maybe this will be next,” Erlam added.
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