Bitcoin is on course to fully recover from the initial price drop that it suffered today after news of the discovery of a new coronavirus valiant trickled in. The news disturbed the market and caused a price dump of about $6,000 in 24 hours. Bears took over the market for long hours today to bring Bitcoin lower. The coin was heading towards the $60,000 mark.
Bitcoin, with the biggest market cap in the digital asset world, crashed to wipe out many bullish investors who hyped the “next ATH for Bitcoin”. Concerns over the new viral strain that was discovered in South Africa quickly spread on Friday and influenced the market shortly before the European trading session. But the effect was global; BTC investors around the world went bearish on the token.
Bitcoin had been hovering around the $59,000 resistance mark and was on course to break it before the news came in. Within minutes after the impact was absorbed, Bitcoin lost $2,000 and, according to Cointelegraph, wiped out millions of dollars invested in Bitcoin futures. But since late morning ET, bulls have entered the tray and stabilized the coin.
Bitcoin gained $1,500 to reach above $54,400 today. But while the bulls were trying to reverse the market, something curious was happening on the stock market. Pfizer, one of the biggest pharmaceutical companies, gained up to 7% on the stock exchange. Pfizer is one of the companies that have managed to make coronavirus vaccines.
Bear Market? No, Thanks.
Some notable analysts have called Bitcoin’s loss a bear market. Both Bloomberg and CNBC have said that Bitcoin is on a downtrend. But they might not be wrong, seeing that Bitcoin had a $5,000 red candle today. But other analysts are hesitating to call it a bearish market, instead choosing to wait for the long-term effect to see how Bitcoin absorbs it.
But there are some reasons to believe that Bitcoin can normalize and even hit a bullish run. Recently, it was reported that the Bitcoin network surpassed PayPal in the total amount of dollar processed value. Some others have pointed that the current bearish price action is not new but rather consistent with previous bullish markets at this time of the year.
Going by the previous Q4 Bitcoin charts, the asset might be gearing for a strong bullish move going into the close of the year. Bitcoin has shown that it can shake off negative news and break into a new all-time high price. In May, the now-famous 2021 market meltdown began, moving Bitcoin to trade below $35,000 for some time.
But Bitcoin shook off the bearish trend and rose steadily from August until it hit a new ATH of $68,789 in November. Since then, the coin has traded below $60,00 and only recently picked up momentum to crush that resistance. Bitcoin’s volatility continues to be an adverse characteristic that has been condemned by governments and central banks around the world.