The cryptocurrency markets once again lose hundreds of billions of dollars in value in less than 24 hours. At the time of writing this article, the global market cap sits at $1.2 trillion, and top cryptocurrencies went down by more than 6%. If we check the fear & greed index, it shows extreme fear after considering market sentiment, volume, and volatility.
We have seen similar pullbacks/sell-offs in the last few months, and most of them were initiated by China FUD. But this is different. We see markets worldwide go down as the new Covid Delta Plus Variant shows dominant behavior in a few states and countries. It has become the biggest fear driver right now, and many experts are saying- it is a breakthrough infection, which means it is more resistant to vaccines than its predecessor.
We know that the Delta variant dominated the second wave of the virus, causing more deaths than we could ever imagine. With a different variant on the rise- people are fearful- if history will repeat its course.
While the data on Delta plus variant is unclear, some reports highlight it has already been detected across 11 countries and few hundred cases are officially registered. The estimate on active Covid-19 cases and deaths raises more concerns, as many officials believe the government is undercounting and dismissing excess deaths. In India, excess deaths during a pandemic are now at 4.9 million, and New York Times added- the most conservative estimate would be 600,000.
With all this uncertainty spreading around, we see the selling pressure go up significantly, and it is visible across all the markets. The crypto market lost $100 billion in 24 hours. The Dow Jones plummeted about 725 points. We saw the S&P 500 index end the day 1.6% lower, and 1.1% is the case for Nasdaq. The US crude futures dropped by more than 7.5%, making it the biggest one-day drop in the last ten months.
Some states in the US are now asking their citizens to wear masks in public, and it is a must for everyone. This is alarming because even the vaccinated people are required to wear a mask. Many investors in States are closely monitoring this new wave of the virus, and some predict it will only worsen.
Although it is too early to conclude, we can see how severe this new variant can be and how much damage it can possibly inflict. It is important to monitor the market movements closely, as we need confirmation that we are actually in a recovery phase and not trending downwards.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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