Bitcoin, Ether up as China reopens post-Covid clampdown, but concerns remain

The day has started flat for cryptocurrencies as Bitcoin was higher.

The day has started flat for cryptocurrencies as Bitcoin was 0.12% higher at $16,560 and Ether was up 0.3% at $1,193.40. However, crypto investors should know that both Bitcoin and Ether are on track for a decline of over 60% in 2022.

Meanwhile, the US dollar shaved off some gains on Thursday. Treasury yields WERE higher overnight, though investors remained on edge going into the year end as initial optimism over China’s reopening fizzled, Reuters reported.

While China has removed its quarantine rule for inbound travellers beginning January 8, the United States, Japan and India have clamped down and insist that they would require COVID tests from anyone arriving from there.

The world was caught by surprise at the speed China has scrapped COVID rules after the earlier stringent, even draconian policy, but this has caused its health system to be overwhelmed and sparked concerns about the spread of the virus.

Pound sterling was higher by 0.1% to $1.2030, but was similarly not far off its three-week low of $1.1993 that it hit last week. The euro was up 0.12% at $1.0623.

“Many countries adopting an additional layer of testing for travellers arriving from China reflect hobbled resumption of travel amid China’s outbreak,” Vishnu Varathan, head of economics and strategy at Mizuho Bank told Reuters. “This might also fuel fears of new strains of COVID that could once again disrupt the global recovery.”

The uncertainty over the global economic outlook, along with mounting worries about a recession in the United States, saw the two-year Treasury yield, which typically moves in step with interest rate expectations, slip overnight. It last stood at 4.3678%.

Against a basket of currencies, the U.S. dollar index was firm at 104.33.

The Australian dollar was last 0.07% higher at $0.6745, while the Kiwi gained 0.55% to $0.6345.

The Chinese offshore yuan too was up, or rather flat, rising just over 0.2% to 6.9789 per dollar.



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