Tech Stocks Tumble And Crypto Crashes As Omicron Spreads In US

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Last Updated on 4 December 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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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.

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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’.

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’.

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’.

Depositphotos.com / denisismagilov