Investors expect Omicron version to reduce demand for oil
Bitcoin prices have crossed the $ 58,000 mark due to a general uptick in market sentiment and a downturn in financial markets. Cryptocurrencies have performed exceptionally well in recent months, even surpassing previous milestones. As a result, organizations that are positively associated with Bitcoin and other digital currencies have increased in value, as MicroStrategy has demonstrated. Microstrategy has become the company with the most exposure to Bitcoin on its financial record. During the recent drop in cryptocurrency prices, the company acquired $ 414 million in Bitcoin.
Investors should be aware that MicroStrategy currently holds approximately 121,044 tokens with a total value of $ 7 billion. If Bitcoin prices continue to rise after a brief drop over the Thanksgiving holiday, the company’s revenue could more than quadruple, based on the average price paid to buy the digital assets. After MicroStrategy announced its recent Bitcoin purchase, the company’s stock price jumped to $ 693, rising nearly 4.5%.
Oil prices rose after falling below $ 70 as investors expected the Omicron version to reduce demand for oil due to lockdowns and travel restrictions, much like large financial markets . However, there was no obvious reason for the markets to be concerned as signs of the new strain appear to be subdued and officials are optimistic about their ability to regulate the issue effectively and efficiently.
Another explanation for the sharp drop in oil prices could be that investors were cashing in the profits triggered by Omicron’s announcement, as oil prices had previously hit their highest level in about seven years, breaking the 85 mark. $ in October. Brent crude oil, the global standard, also peaked in three months. The most important event for oil is the OPEC + meeting to be held this week, in which the group will discuss Omicron’s risk to wider oil markets and decide on production for January 2022.