On Tuesday, December 7, Bitcoin rose above $50,000 for the third day in a row, as investors bought into a 20% decline over the weekend, which was sparked by a mix of concerns about the impact of the Omicron Covid variation and aggressive selling by large crypto holders.
Bitcoin Price Today
At 07:18 a.m., Bitcoin had risen 9% in 24 hours to $51,511.24. According to Coinmarketcap, Ether rose 12% to $4,424.44 at 2:00 p.m. ET.
A sell-off gained traction on Saturday, December 4, when larger investors piled in, driving the price down by as much as 20% to below $43,000, while lesser cryptocurrencies plummeted.
The gains in Bitcoin and Ether had spread to other coins, including the native tokens of the Polka dot, Avalanche, and Terra blockchains, which had risen by more than 12%.
The spike and immediate bounce back is theoreticized to be because of existing and new investors seizing the opportunity to buy in the crash of a 20% drop.
Some took the liberty of buying for it has been known in the market that Bitcoin's price has been surging.
Bitcoin Volatility
Bitcoin is still about a quarter of the way down from its November high of $69,000. Due to the strength of the dollar and investors cashing in on this year's massive profits, the price has been gradually drifting.
The appearance of the Omicron coronavirus variant was the most recent spark, albeit some of the alarm about the threat it poses to the world economy has subsided.
The likelihood of more quick action by the Federal Reserve, which has warned it will tighten monetary policy, has increased as US growth and inflation have picked up.
Investors are frequently enticed out of the more costly sections of the market by raising interest rates.
In the immediate run, it is believed Bitcoin will face a new resistance level of roughly $55,000.
Although Bitcoin remains the most valuable cryptocurrency by market capitalization, its supremacy has waned as other coins have appreciated in value this year.
It now contributes for roughly 40% of overall market value, down from 70% in January.
Cryptocurrency
Metaverse Cryptocurrency tokens, such as Decentraland's mana and Sandbox's sand, which are less liquid than Bitcoin, surged in value.
Mana increased by roughly 16%, while sand increased by 13%, and "Axie Infinity's" axis token increased by 11%.
The CEO of Plutus.it, Danial Daychopan, stated that ever since Facebook renamed its company to Meta, there has been an enormous increase in metaverse-related projects.
Daychopan also added that the recent market crash presented an opportunity to buy in for those investors and enthusiasts who missed the stock rally after Facebook launched Meta.
Marcus Sotiriou, an analyst at Canada-listed digital trading company GlobalBlock, stated that "the metaverse industry is in my opinion only just getting warmed up, relative to their long-term value."
According to Markets Insider, non-fungible token-linked cryptocurrencies were the highest performing digital assets in November due to the metaverse.
In the last few weeks, investors have poured millions of dollars into the digital world.
In The Sandbox, a virtual block of land recently sold for $4.3 million.
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