Ongoing concerns over the spread of the COVID-19 Delta variant have led to bitcoin’s largest decline in four weeks, below $30,000, according to a Tuesday (July 20) report in CoinDesk. Bitcoin sellers were active in Asia Tuesday morning, according to the report.
As reported previously in this space, bitcoin first dropped below $30,000 on June 22. Cryptocurrencies, like Wall Street, are taking a hit in the wake of the increasing spread of the Delta variant. The situation has spurred new concerns about the downturn in economic growth. The rate of new coronavirus infections due to the Delta variant have escalated in portions of Asia and England, while, in the U.S., new cases grew 70 percent last week.
As the world grapples with another COVID outbreak, bitcoin declines follow traditional markets as investors disengage with uncertain assets related to concerns of a weaker monetary and fiscal stimulus and increasing COVID-19 cases, according to a report this week. Economy-linked value and travel stocks are also struggling following the increase in worldwide COVID-19 cases.
In terms of a recovery, as reported previously, economists expect a slowdown in the economy once stimulus funds dry up, but anticipate steady growth for the next year as people spend their stimulus savings. Afterward, the economy is expected to slow to a pre-pandemic rate.
Bitcoin was trading around $29,600, a drop of about 5 percent over the past 24 hours, according to the report. The next level of support at $27,000, drew comparisons to the March 2020 low. Amid Bitcoin’s plummet, cryptocurrency prices in general were in the red this week, according to a report.
Yet, despite the most recent declines, bitcoin is up 4 percent year to date, compared with an approximately 12 percent return for the S&P 500 Index.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More