New COVID Variant Drops Cryptocurrencies After Thanksgiving

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The global cryptocurrency market has declined following news of a new COVID-19 strain reported in South Africa after Thanksgiving eve.

The stock index did not fare much better, with futures contracts on the Dow Jones Industrial Average falling 700 points ahead of a shortened trading session. Cases of COVID were already on the rise, but this new tension quickly restored fear in capital markets, which spilled over to cryptocurrencies.

It looks like the pandemic continues to be a wild card despite the move towards global vaccination. This new strain certainly brings another dark cloud of uncertainty that will certainly add a heavy dose of volatility in the days to come.

“There is a lot that we don’t understand about this variant,” said Richard Lessells, an infectious disease physician at the University of KwaZulu-Natal in Durban, South Africa. “We are concerned about the mutation profile, but now we need to do the work to understand the significance of this variant and what it means for the pandemic response. “

Average dollar cost of decline

The main cryptocurrency bitcoin has fallen 20% from the all-time high reached during the month of October. While cryptocurrencies generally walk to the beat of their own drum, it was clear that macroeconomic factors affecting traditional markets were also affecting digital currencies.

On the bright side, it fuels a dollar cost averaging methodology well. It is about buying the price drops when an asset drops in order to lower the average price bought by an investor.

“Bitcoin is a savings technology and a store of value when you save consistently,” notes a CoinDesk article. “As advisors, we advocate for clients to automate their savings on an ongoing basis when planning their goals and for retirement. You are now using a better method to help them save money. You don’t need to turn off all the savings they make in other assets.

“One option here, for example, is to part with bitcoin and allow bitcoin’s adoption rate, which rivals that of the internet in 1997, and the network effects of better money work. in favor of your client, ”the article adds. . “Do you think of volatility? The average cost in dollars reduces this impact.

For more news, information and strategies, visit the website Encryption string.



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