Bitcoin Gains 10% after Friday Decline, Trades Near $58K

29 Nov 2021 · 3rd Party Analysis

Bitcoin Gains 10% after Friday Decline, Trades Near $58K

WRITTEN BY ThorFX

In Summary:

  • Bitcoin joined falling stocks on Friday as new Covid-19 variant swept every asset class
  • The orange coin shifts into gear for the week with a 10% jump to trade near $58,000 per coin

What’s Trading in the Markets?

Bitcoin caught up with falling stocks Friday as markets got hit by the new Covid-19 variant threatening to upend recent progress. That said, the price of bitcoin staged a strong recovery as it gained 10% to trade near $58,000.

In more detail, bitcoin, along with stocks and oil, nosedived Friday after a dangerous coronavirus strain appeared in South Africa. The new variant, called Omicron, is thought to spread faster than previous variants and, what’s more troubling, could possibly evade vaccines.

The concerning news prompted investors from every asset class to seek safety in so-called havens, assets offering protection in uncertain times. On this note, bitcoin wasn’t strong enough to withstand the waves of increased selling. Soon after Wall Street stocks fell, the price of bitcoin retreated also.

As a result, the orange coin got hit by an 8% drop on the day and reached $53,500 per token. Over the weekend, however, the flagship cryptocurrency reversed its bearish move and jumped to a Sunday session high of $58,230.

Trades Buy the Dip in Bitcoin

With this in mind, many crypto proponents are eager to get back to the market and buy the dip. Presently, bitcoin’s price hovers about 16% from its all-time high of $69,000 set Nov. 10. In that context, strategists remain confident once the Covid-19 threat is defeated, bitcoin will get back on track.

In addition, projections for a new high sooner than later remain on the cards for the original cryptocurrency and other digital assets. Ether, for example, is hovering about 11% from a record of $4,860. Currently, the price of the Ethereum token is roughly $4,430 apiece.

On Friday, Ether was also heavily hit as it slipped below $4,000. In other words, the second-biggest crypto has rallied about 12% since its low last week.

Dive Deeper in the Financial World

Meanwhile, US stock futures early Monday moved higher as traditional investors were looking to get into discounted shares. Dow futures, for example, traded higher by about half a percent. In addition, S&P500 futures and Nasdaq futures gained 0.8%, and 1%, respectively.

On Friday, stocks on both sides of the Atlantic dropped significantly as traders scrambled amid the looming uncertainty from the new Covid-19 variant. More specifically, the Dow plummeted 2.5%, while the S&P500 slipped 2.3%. Additionally, the Nasdaq Composite tumbled 2.2%.

What to Expect in the Markets?

This week, the financial market will be focused predominantly on the new Omicron coronavirus strain. Any updates are likely to sway market moods and shift trader perspectives. Traders will be watching to see if the vaccines now in use are able to offer protection against the Omicron.

Until then, uncertainty will continue to define the markets. Still, key economic data this week is set to arrive. Today, Federal Reserve chief Jerome Powell will testify before US lawmakers. He will address key issues ahead for the US economy and provide some insight into monetary policy.

Further, the market will be anticipating the jobs report slated for Friday. More precisely, November’s non-farm payrolls are expected to show the US economy added 563,000 new jobs.

Other important reports from around the world include inflation data for the eurozone on Tuesday. On the same day, GDP data for Canada and Australia will highlight the pace of the economic expansion of both countries.

Economic News Today (EST time)

Today, Fed chair Powell appears before the US Senate at 10:00 am and later at 03:05 pm.

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