Friday saw a sharp fall across various markets including cryptocurrencies. Bitcoin formed a new 7 week low, which is making people speculate over a possible onset of the bear market.
The asset fell over 8% on Friday as shared by Coin Metrics. After being on a bullish run and creating a new all-time high of over $69,000, it lost a significant value. The onset of the bear market is officially categorized in the crypto world when it loses 20% of the value.
Apart from Bitcoin, other major cryptocurrencies also took a hit, where Ethereum which is second to bitcoin too fell nearly 10% making a rest at $4,059.
However, some experts only see it as a temporary setup motivated by the new covid-19 variant which is showing symptoms of being vaccine-resistant and was detected in South Africa, forcing many nations to close their borders again, just when they were beginning to recover.
The impact of the virus and inflation in multiple parts around the globe can also be seen in the asset market, which has been bathing in red from European Markets to U.S. Futures.
The interest in bond-like investments also seems to be rekindling, as other risky investments do not seem like a very lucrative idea at the moment.
“Generally, the projects that you see surviving the best are the ones that have huge, really loyal followings and the ones that have really important use cases,” Bankman-Fried said speaking on which cryptocurrencies are ideal in the market.
Speaking about the current scenario he added that, “There will always be more crashes, there will always be more bull runs. My best guess is that over the next few years, we may see substantial institutional adoption of cryptocurrencies.”