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Effects of COVID-19 and Omicron on Bitcoin Price



Effects of COVID-19 and Omicron on Bitcoin Price

Photo by Karolina Grabowska from Pexels

This article is on the changes that crypto market is facing after the covid-19 breakthrough. Creating the cryptocurrency network, there must be a standard data method to be applied for the digital currencies since January 1, 2019, to December 31, 2020. Additionally, there is a method of correlation coefficient to make the comparison. The Bitcoin Trading Platform is about the new time when people are looking forward to knowing more about bitcoin and investing in bitcoin.

We create a network based on these two approaches by applying a minimum spanning tree and a planar maximally filtered graph. In addition, we study the statistical and topological characteristics of these networks. After the outbreak of COVID-19, the graphs have a marked difference in network measurements compared to the previous ones. In this article, we are discussing impact of covid on bitcoin price on cryptocurrency markets.

Furthermore, the results of graphs created by each method differ in the network’s topological and statistical features and behavior. In time of the pandemic, we have seen Qtum and Ethereum to be the most influencing ones. Our results provide insights and expectations for investors in sharing information about cryptocurrencies amidst the uncertainty caused by the COVID-19 epidemic.

I. Covid-19 and Omicron on Bitcoin Price:

1. The coronavirus outbreak had contributed in the rise of the correlation between equity markets and Bitcoin. For example, as the S&P index plummeted, we had seen also seen a drop in the pricing of bitcoin. It dropped below USD 4,000.

A sudden rise in the liquidity made it happen. Although prices have now recovered to around $ 7,000, it will take time for Bitcoin prices to rise again.

2. In case of BTC, there are a lot of uncertainties associated about what shape it will take in future. However, the relationship between S&P and BTC seems to be coming close. The reason is that, the investors of the market have become confused about the liquidity crisis of March 12.

Investors hope to witness a rise again in the price. There is a need for unskilled miners to stop, not too much though. Otherwise, it will affect the world economy.

3. A relatively little-known cryptocurrency token named after the Greek letter Omicron has risen more than ten times in two days, surpassing top digital currencies such as Bitcoin and Etherium, the World Health Organization’s (WHO) latest Omicron of concern following the naming of the newest Covid-19.

4. From Friday to the next Monday morning, The price rose to $ 688, down from the previous $ 70 of Omicron. As of 10.45 am IST on Wednesday, the platform was trading cryptocurrency at $ 324.73, with a thoroughly mixed market cap of $ 324.73 million, according the crypto data platform.

In the early November, Omicron came into the market. and as per the Coinmarketcap, it was able to hold on to the value of USD 65 for almost the entire last week.

II. Bitcoin becoming a haven:

1. As they say, Bitcoin still has time to become a haven just like gold or silver. These will change the underlying memory if the Fiat system is under threat. There are various descriptions surrounding Bitcoin, but the biggest one remains that most of the volume is due to trading. Some will argue that it is a form of gambling; some will see it move towards digital gold.

2. The US FED and the government is making billion dollars of investment in economy. Bitcoin will not be capable of replacing dollars till it is going strong. However, a firm believer in the BTC Digital Gold concept and how the government is indiscriminately pumping Fiat, a Gold and BTC can play an important role – an international currency.


Although there is no correlation between the show and the currency, the popularity of the Netflix show squid game has led to similar price increases with the bitcoin.

The pandemic had made several effects on the market of cryptocurrency. We were already working on various issues like regulation liquidity. Scams etc., and added it to the list of concerns.

Although it can now be called a mainstream resource, it has not yet been institutionalized. Governments all around the world has to take prominent steps to make everything simpler to sell and buy.

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