Crypto prices are in the doldrums and it doesn’t look like a recovery either. Has the delta variant now hit cryptocurrencies? Is this price slide the global failure to contain the new covid variant? Or is it even just a normal crypto price correction?
Japan briefly barred all spectators at the Olympics
Although a large number of spectators were actually scheduled to attend the Olympics, which begin on July 23 in Japan, they were briefly excluded yesterday. Due to the new Covid Delta variants, local organizations, in consultation with the Olympic Committee, have excluded all spectators. Basically, this is a very strong indicator that not only will other countries take drastic action in the near future, but also that the global economy will take another hit. However, it is not just the global economy that is suffering, but the cryptocurrency markets as well.
This can be seen by the fact that traditional markets are already reacting, with Nasdaq and S&P 500 indices alike falling from their record highs. The knock-on effect was that traders immediately dumped risky assets and not only bitcoin but numerous altcoins tumbled overnight. However, this was not just about Japan, but this drastic action that may take hold across the world is affecting markets.
Crypto price correction – altcoins fall especially hard
Investors sold cryptocurrencies in addition to stocks and bonds. Panic is spreading and the Bitcoin price fell by around 3% from USD 33,450 to USD 32,250. However, Bitcoin dominance increased by almost 2% from 44.6% to 45.9%. This indicates that traders were looking for bitcoin safety.
In particular, major altcoins such as Ethereum (ETH), Polkadot (DOT) as well as Solana (SOL) were hit hard. Ethereum plummeted by over 5%. Polkadot by about 8% and Solana plunged by about 9%.
D’Anethan of Eqonex commented as follows:
In traditional markets, everyone is bearish, so they probably have to release cash or feel they don’t want to take a risk on crypto assets as well and end up selling.
Politicians to blame for delta disruption
According to CNBC market analyst Jim Cramer, politicians are to blame for not taking the Covid Delta variant seriously. They have not acted in time to ensure that the spread of the Delta variant, which is particularly contagious, is curbed.mmt. Meanwhile, the delta variant is predominant in Europe, but this is still not properly perceived by politicians.
I put this sell-off squarely in the lap of politicians around the world because we currently have a failure of global leadership, Cramer said.
Look at Spain, for example. Until July 4, travelers from England were allowed to enter without testing or vaccination, even though England had already had numerous contagions of the Delta variant. The numbers are correspondingly high at the moment. But even the European Championship is not helping to get the problem under control. There are almost 65,000 spectators at the final on Sunday – 1,000 of them from Italy. So there’s no need to be surprised if this covid variant becomes more and more widespread and then drives the economy and financial markets to the abyss.
China – the second factor causing cryptocurrencies to free fall
Another factor that there is a crypto price correction is of course China. The crusade against crypto trading, stablecoins and also bitcoin mining is also pushing the price down. Just yesterday, a senior official at the People’s Bank of China, expressed concern that digital currencies have become speculative instruments, threatening security and social stability as well. At the same time, however, the digital yuan is being pushed. In total, China’s central bank has recruited 10 million users for testing.
D’Anethan is also convinced that the already faltering crypto market could falter as a result of this statement. Mainly because Chinese officials keep voicing their concerns about cryptocurrencies, which naturally has an impact on investors. They’re selling and they’re afraid of losing even more. But basically, this is just a crypto price correction, which of course we will weather. After all, if you believe crypto expert Philipp Sandner, who sees bitcoin at 200,000 euros, we just have to wait for things to improve.
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