Tech Stocks Tumble And Crypto Crashes As Omicron Spreads In US
Tech Markets in the USA ended a tumultuous week on a very dark and ominous note, with the Omicron variant being detected in 10 US states and authorities over there grappling with the fact that a new wave would likely be starting.
The broad technology-sector selloff sent major US stock indexes sharply lower and saw Bitcoin fall to $47k. Altcoins in the cryptomarket experienced double digit losses, which is what could be seen as a short-term crypto crash.
Fed’s tapering
Jerome Powell, chairman of the US Federal Reserve, signaled earlier this week that his administration would start ‘tapering’ aka buying up less government bonds, which would make sure that interest rates would start to rise and (probably) lower the risk of inflation.
This knowledge, combined with the risk of the new US Covid wave because of the widespread detection of the Omicron variant, made for a perfect storm. Investors are now clearly going ‘risk-off’.
#bitcoin looking strong (RSI 68) despite macro headwind (omicron induced March 2020 flashbacks, and potential FED tapering). pic.twitter.com/6YkX9H5Tg1
— PlanB (@100trillionUSD) December 3, 2021
PlanB, the anonymous Dutch trader who invented the now famous stock-to-flow model, had yesterday already explained how Omicron and the Fed are temporarily halting Bitcoin’s planned rise saying there was macro headwind (omicron induced March 2020 flashbacks, and potential FED tapering). He also got in a bit of a spat with Cryptoamran, another crypto influencer who had briefly started tweeting under the moniker ‘Plan C’.
Shit. He obviously didn’t like my Plan C joke! pic.twitter.com/mbmrTkdEVx
— Ran NeuNer (@cryptomanran) December 3, 2021
It will be interesting to see if crypto markets can recover during the weekend. Many ‘Bitcoin maxis’ (influencers who are bullish on crypto) were already urging followers to ‘buy the dip’.
#BTFD #Bitcoin pic.twitter.com/FPz5oasA8G
— Bitcoin Meme Hub 🔞 (@BitcoinMemeHub) December 4, 2021
Depositphotos.com / denisismagilov
Not financial advice. CryptoTips We are not a financial advisor and the content on this website is not financial advice. All information on this website is informative and not a recommendation to buy or sell anything. Consult an expert when making financial decisions and only invest money you can afford. You are responsible for your own investments. We use affiliate referrals and may receive commissions for these. Read our full disclaimer.
Affiliate disclosure. Some links on this site are partner/affiliate links. If you sign up with a partner through such a link, we may receive a commission at no extra cost to you. This never influences our reporting. Read our editorial guidelines.
More News
More news ›
