On Friday Bitcoin and Ethereum Suffered Their Worst One-Day Drop Since September. What’s Next?

The wide announcement of Omicron-Covid variant spurred sell-off and appeared to lead some crypto investors to realize that the path to $100,000 for Bitcoin (BTCUSD) forecasted by the popular Stock-to-flow (S2F) model author PlanB will not be a straight line higher.

The overall situation on the cryptocurrency market continues to look vague: Bitcoin fell below the $ 55,000 mark, now its price is $ 54,283. Most altcoins are also under pressure as Ethereum (ETHUSD) is close to breaching the epic $ 4,000 mark. It is now hovering around $ 4,059 a piece. At the same time, Polkadot fell another -4.8% a day, and its price dropped to $33.66, technically offering a very attractive entry point.

It is safe to say that BTC has seen happier days that were not so long ago. The cryptocurrency challenged its own game-changing $60,000 mark on Friday before a precipitous slump fueled by concerns over a new South African strain of Covid-19. In just a matter of minutes, the crypto benchmark asset lost more than $6,000 in value and dropped to $ 53,500, resulting in nearly $400 million liquidations in an hour. Reasoning and logic didn’t work, as we know, as the panic cashout wave crushed all types of markets instantaneously.

This was the worst price drop since September. Since then, BTC tackled to recover and in a few episodes even exceeded $55,000, but reaching the new heights were’s accompanied by new large institutional inflows as the political climate on Capitol Hill remained complex, so it happened to see standard price corrections. The flagship asset’s market cap is close to falling below $1 trillion at $ 1,025,162,789,090.

“The Plan B idea of USD 98K is gone,” said the crypto influencer Michaël van de Poppe on Twitter last week, referring to the increasingly criticized stock-to-flow model. “The realization of a lengthening cycle is there. We're still fine, even if we drop some more. Just a longer cycle for Bitcoin,” the crypto trader added.