You've Got to be Kidding Me - Here we go again, apes. It appears that the mighty COVID virus has decided to hit us with yet another surprise attack, mutating it's genome to ruin our lives in vastly superior ways. The Omicron Variant, as it is known, has emerged out of South Africa, infecting hundreds thus far while tearing down unwitting portfolios across the globe. You've got to be kidding me.
Officially known as B.1.1.529, the newest variant is apparently "highly mutated" and that's about all we know for sure right now. The first identified cases were largely present in young people, causing mild illness in most of the infected. Scientists remain unclear on the dangers posed to the remainder of the population, particularly groups most disaffected by the OG and Delta variants.
Regardless of the effects, nation's aren't playing around anymore. The globe has apparently graduated from little league restrictions right up to the majors, making sure there's no chance anyway can say they underreacted. Meanwhile, the WHO says countries that have imposed travel bans already - like the U.S., U.K., E.U., Israel- have overreacted.
Oh yeah and markets got absolutely destroyed. Investors are engaging in the financial equivalent of sh*tting themselves. We'll find out later today how much of that was a day one overreaction.
Digital Currencies - Even our fearless leaders in the digital currency industry couldn't avoid succumbing to the FUD erupting after the emergence of the new variant. BTC crashed at least 9.5% in just under a day on Friday, although it has since rallied back over 4.5% in the last 24hrs as on Sunday evening. Still, the leader of crypto has fallen nearly 18% from its all-time high.
Of course, BTC is not alone. ETH, ADA, SOL, and basically everything under the sun saw a sizable and rapid crash as well. Investors appear to be shifting out of more risk-on assets as they flood into risk-off assets like bonds, as seen by fixed income yields plunging across the globe. Still, the fact that BTC and digital assets alike are able to sustain crashes like these and the much, much worse ones seen in the past (without direct Fed intervention, mind you) says a lot about demand for these assets.