Bitcoin rebounds after a post-Omicron dip

Bitcoin’s value appears to be following the trajectory of the broader market in response to news of the new Omicron coronavirus variant. After dipping to $53,359 on Sunday, prices pulled beyond $57,000 on Monday.

Why should we care?
Bitcoin’s trajectory is not unlike other parts of the market: Stocks fell sharply on Friday amid news of the discovery of the Omicron coronavirus variant, but rebounded Monday after investors awaited assessments of the variant’s impact. Other cryptocurrencies also rose on Monday, including ether and XRP. Reports suggest bitcoin made a comeback after reports trickled in that Omicron patients saw mild symptoms. “Bitcoin is largely being grouped with other risk assets at the moment,” one analyst was quoted as saying. Bitcoin’s fortunes are tied to Omicron’s impact on the Federal Reserve’s monetary policy. Some analysts say bitcoin, the top cryptocurrency by market value, will continue to rise in value if the Federal Reserve gives assurances of support amid a possible new pandemic surge. Investors are monitoring the new variant’s impact as various countries impose travel and other curbs.