Just like the scenario played out when the COVID-19 pandemic became a global concern early last year, all tradable financial products are going to feel the impact, with Bitcoin being one of them.
The world is currently taking precautions with respect to the new COVID-19 variant-Omicron, stirring slips in the price of Bitcoin (BTC) in the early hours of today. The registered concern was fueled by comments from the Chief Executive Officer of pharmaceutical and biotechnology company, Moderna Inc (NASDAQ: MRNA), Stéphane Bancel, who told the Financial Times that the current vaccines may have limited effectiveness over the Omicron variant.
“There is no world, I think, where (the effectiveness) is the same level … we had with Delta,” Moderna chief executive Stéphane Bancel told the Financial Times. “I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to … are like ‘this is not going to be good.”
The first variants of the COVID-19 virus had been brought under significant control with the crop of vaccines from Moderna and a host of other pharmaceutical companies. The claims on the ineffectiveness of the current formula across the board may return the world back to the early days of the pandemic and the uncertainties that come along with it. This realization is what the market is currently responding to.
At the time of writing, Bitcoin is down 1.31% to $56,668.70 according to data from CoinMarketCap. The current market value of the coin is now casting doubts on the optimism of market participants, especially those who had projected the price of the premier cryptocurrency to trade above $60,000 by the end of November which is just a few hours away.
With potential new lockdowns looming, other markets have also taken the plunge as the futures tied to the S&P 500 declined by 1.2%. The Australian Dollar-U.S. Dollar (AUD/USD) exchange rate slumped to a 12-month low of 0.7092, and the yield on the U.S. 10-year Treasury note penetrated Friday’s low of 1.47% as government bonds drew safe-haven demand.
What Can Shield Bitcoin from the Current Price Slips?
Just like the scenario played out when the COVID-19 pandemic became a global concern early last year, all tradable financial products are going to feel the impact, with Bitcoin being one of them.
The good news is that Bitcoin has grown remarkably from Q1 2020 to date. The coin is now being backed by big institutional investors including MicroStrategy Incorporated (NASDAQ: MSTR), Tesla Inc (NASDAQ: TSLA), and Square Inc (NYSE: SQ) amongst others. Beyond holding it on their balance sheets, several payment service providers particularly Paypal Holdings Inc (NASDAQ: PYPL) now offer trading for the nascent asset class, further extending its usefulness in today’s financial world.
The wide acclaim of Bitcoin and the obvious resilience it has shown thus far this year in the face of harsh regulations from China is a reassuring factor on the ability of the coin to withstand whatever negative price actions that may emanate from the uncertain clouds being stirred by Omicron.
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