First Mover Asia: Bitcoin Drops Following First US Omicron Case

Bitcoin briefly dropped below $57,000 during U.S. trading hours on Wednesday after news broke that health officials in the country confirmed the first case of the new coronavirus variant, Omicron, in California. At the time of publication, the largest cryptocurrency by market capitalization was trading just above $57,000 but still down for the day.

The drop wiped out bitcoin’s earlier gains when it increased above $59,000 from a low at roughly $55,920 a day ago. Stocks also fell, with the S&P 500 dropping by 0.49% on Wednesday.

One analyst remains positive about the potential Omicron’s long-term impact on crypto.

“While the new coronavirus variant has raised concerns over potentially tumbling down crypto prices, it is also essential to note that crypto markets had observed strong growth throughout [the pandemic],” Danny Chong, co-founder of Tranchess, a Binance Smart Chain-based, yield-enhancing, asset-tracking protocol, said via a representative.

Ether also retreated, down to about $4,575 from as high as $4,782.40, according to CoinDesk’s data, ending its four-day winning streak. As an investment asset, ether posted a strong monthly return in November, beating bitcoin and macro assets, including the S&P 500, gold and bonds.