Bitcoin Bulls Hold Breath as BTC Tumbles Below $46k but Bounces

US Markets started the day lower on Omicron fears; bitcoin clings to recent support level

article-image

Blockworks exclusive art by Axel Rangel

share
  • BTC fell to $45,490 in Friday trading; ETH slid to $3,700
  • A new set of projections on the spread of the Omicron variant paints a bleak picture

The S&P 500 and Nasdaq indices briefly traded about 1.5% lower on Friday as market participants digest the news stemming from the latest projections for the spread of the Omicron variant of the coronavirus that causes COVID-19. Bitcoin dropped over 3.4% after markets opened in New York, but recovered back above $46,500 over the next 90 minutes, giving hope to bitcoin bulls.

Researchers at the University of Texas released a study, Thursday, on the possible trajectory of Omicron cases. Under the “optimistic scenario” Omicron is 50% more transmissible than Delta, the variant that currently accounts for the vast majority of cases detected.

But it’s the “pessimistic scenario” that is the cause of alarming headlines today. The projections suggest that the Omicron surge would peak in February at 1.8 times the rate seen during the January 2021 peak of hospitalizations and 1.2 times the daily deaths caused by winter infections. Total US deaths attributed to COVID-19 passed 800,000 this week.

Noelle Acheson, head of market insights at Genesis, told Blockworks that general bearish sentiment is in line with macro uncertainty thanks to the virus.

“We also have some investors starting to rebalance portfolios as, with the FOMC meeting out of the way, no significant potential catalysts are expected between now and the end of the year — BTC has had a weak Q4 but is still up on the year, and we could be seeing some macro profit taking,” Acheson said.

She notes that BTC is still outperforming most other major tokens today, hinting at its safe haven status among digital assets.

Ether has fallen -4.4% against the US dollar in the past 24 hours, while the only crypto asset among the top 20 to trade markedly in the green on the day is Avalanche’s AVAX, trading about 9% higher.

Bitcoin’s quick recovery brought it back inside the descending triangle — generally a bearish trading pattern — that has formed over the past ten days, which indicates there were willing buyers of this dip.

Bitcoin bulls cling to hopeBTC/USD on the 12-hour timeframe since Dec. 7; Source: TradingView

Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /