The new Covid variant is all the rage these days, and it is turning Bitcoin into a traditional asset. BTC is experiencing a price downfall since it touched its ATH price of $69K earlier this month. However, it still managed to rise above the $57K level and scored 5% gains in the past day.
So how the new Covid variant is related to Bitcoin? The crypto market saw a quick downfall amidst the news of a new Covid variant. However, Bitcoin didn’t follow the same trend, and it proved to be a traditional asset.
Avil Felman from BlockTower mentioned in a recent interview that BTC is an anchor asset. He also added that in a couple of years, it could become a traditional asset like stocks.
According to a survey, 41% of global respondents felt BTC be more trustworthy than their local currency. Although BTC had a 5% fall in November, the weekly inflows into investment products averaged at $94.4 million.
Moreover, Felman also said that metaverse, like many other similar projects, had witnessed increased traction even when Bitcoin was weak in the past two weeks. It is also expected that metaverse will become a trillion-dollar industry by next year. So what about Bitcoin? According to Felman, it will trade in a well-defined one to a two-year cycle but as a macro asset.
This shows that it is an asset with a varied set of market participants compared to the past. BTC might not witness the volatility and downtown as it did before in a few years.