Bitcoin (BTC) and its relatives have suffered a bumpy 2021, from which it appeared they were recently emerging. But with just weeks to go before 2022, a crash has capped several coins at the knees, BTC among them. Experts estimated the flash crash wiped $300 billion from the market since last week, and experts have identified several potential culprits.
Why is Bitcoin crashing?
BTC is reeling from a sudden selloff that caused it to lose 30 percent, descending from $69,000 to $51,000 apiece.
The token has since caved further and is currently at $48,305.55, with others, such as Ethereum and Binance coin, also struggling.
They have fallen from $4,500 to $4,051 and $612 to $564 respectively over the last 24 hours.
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Mr Navellier added that as the organisation tapers, it will inflame volatility, sweeping across “both stocks and bonds” as well.
The volatility would hit established currencies but the least valuable first.
Ultimately, they could result in BTC losing up to 80 percent of its value, potentially dropping below $10,000.
Mr Navellier set out potential warning signs such a dramatic decline was on the way.
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He said he would see a decline “below $46,000” as a “yellow flag” and anything below $28,500 as a “completed massive double top”.
That, in turn, would point towards “a decline to below $10,000”.
Mr Navellier’s comments aren’t the only factors currently scaring investors, as real-world events are too.
The Omicron Covid variant has emerged as one of them, as infections leave people “jittery”.
Omicron has spread through several countries since South African scientists sequenced it in late November.
Health officials fear it could escape the immunity afforded by vaccines, although evidence does not point to this as of yet.
Some nations, including the UK, have issued travel bans, harking back to the early days of the pandemic in 2020.
Vijay Ayyar, head of Asia Pacific at Singaporean crypto exchange Luno, told Bloomberg the variant makes it “hard to say what that means for economies and markets and hence the uncertainty”.