Volatility dominated the bitcoin during trading today, Thursday, after it dropped yesterday to the $57,150 level, after testing the psychological resistance level 6000$.
The volatility dominated Bitcoin during trading today, Thursday, after yesterday’s drop to the level of $57,150, after it jumped near the psychological support level of $60,000 on Tuesday, and over the course of this week, the leading cryptocurrency achieved gains of about 6% after falling to the lowest level at $53,650 Last Saturday (November 27), over the past month the coin lost about 8% of its value.
Global stock and cryptocurrency markets plummeted on Friday after the World Health Organization pointed to the risks of the latest variant of Covid-19 called "Omicron", which was first detected in South Africa.
Bitcoin makes up for its losses
More than a week ago, the bitcoin experienced a sharp decline as the price reached 53 thousand dollars, but a few days ago the currency regained its losses, since then, the cryptocurrency has tended mostly to trade sideways, it is not clear at the moment which direction the currency may go from This unification.
In fact we have seen in recent weeks that in times of real uncertainty, bitcoin has not performed well as an inflation hedge or a safe haven asset, there is no doubt that it is a great tradable and highly speculative tool, but now it is quite clear that it is a very risky asset and not More so, Bitcoin is currently being traded as a risky asset rather than an inflation hedge.
If this new alternative causes risk aversion in the markets, Bitcoin could come under serious downward pressure, unless the inflation issue gains support again. There is no sign of that yet, but, as always with cryptocurrencies, the Amazing to find an upside down in anything.
A downtrend is a sign of market maturity
Despite the recent decline, the market continues Crypto In distancing itself from the situation in traditional financials without entering into a deeper profit correction mode, Bitcoin's bearish trend, if not accelerated in the coming days, is considered a sign of healthy market maturity without hurting it.
Cryptocurrency investors are becoming more sophisticated, viewing the sector as a business rather than a way to provide capital, where the bet being played can multiply the investment.
Bitcoin prices soared near $60,000 as a result of the general increase in market sentiment and decline in financial markets, as cryptocurrencies have done exceptionally well in recent months, and as a result, the value of institutions that correlate positively with Bitcoin and other cryptocurrencies have increased, as shown with MicroStrategy Corporation.
Microstrategy emerged as the company with the most exposure to investing in bitcoin in its financial report, as during the recent drop in cryptocurrency prices the company acquired $414 million in bitcoin.
Investors should be aware that MicroStrategy currently holds about 121,044 bitcoins with a total value of $7 billion, if the coin's price continues to rise after a brief dip during the Thanksgiving holiday, the company's revenue could more than quadruple, based on the average price paid. To buy digital assets. After MicroStrategy announced its recent purchase of the cryptocurrency, the company's share price jumped to $693 up by ~4.5%.