Many people believe that bitcoin or cryptocurrency is immune to covid, however if we look at the graph below, we can see that the value of bitcoin is declining as the number of covid cases in the United States rises.
The price of bitcoin is declining with rising covid cases as in comparison to it’s all-time high, as shown in the graph.
Bitcoin has lost approximately 4% of its value. The cryptocurrency, which now trades for less than $50,000, is down 23% from it’s ATH (all-time high).
The current decline began when rumours surfaced that President Joe Biden may propose much higher capital-gains tax rates, prompting risky assets such as equities and Bitcoin to plummet. Stocks, on the other hand, appear to have hit bottom. S&500 futures are up 0.2 percent on Friday morning, but Bitcoin continues to plummet. This may seem like a wonderful time for someone who has made a fortune in cryptocurrency to cash out.
Bitcoin is not alone in its suffering. Ethereum, the second-largest cryptocurrency by market cap, fell more than 5% on Friday and is down roughly 8% for the week. Tesla CEO Elon Musk’s favourite cryptocurrency, Dogecoin, is down approximately 9% on Friday and 45 percent for the week. Polkadot—yes, there is a cryptocurrency called Polkadot—is down 11% on Friday and 30% for the week. The cryptocurrency market is in shambles.
Given the current unfavourable global macroeconomic environment, a meltdown in the bitcoin market is unsurprising. However, it will not be the end of cryptocurrency. Governments are actively implementing corresponding economic policies in response to the circumstances, which will benefit the crypto market.