#FINANCIAL_LITERACY

Initially, ambiguities over the longer-term impact of the Covid-19 omicron variant shook global markets, including cryptocurrencies. Early reports suggested that the new strain is much more transmissible than the delta variant, creating concerns about potential mitigation measures. Of course, that would entail drags on the international economy, which wouldn’t benefit cryptos. Now, however, investors are resting a little bit easier as health experts weigh in on the available evidence. When discussing the severity of the variant, National Institute of Allergies and Infectious Diseases (NIAID) director Dr. Anthony Fauci stated, "It almost certainly is not more severe than Delta." Further, Fauci remarked that omicron could be less severe. That is helping both stocks and cryptos regain composure. While the recent comeback has been very encouraging -- after all, multiple cryptos were trading at critical technical thresholds -- no one can say for certain whether we’ve hit a bottom in negative sentiment. Sure, European stocks appear to be brushing aside omicron fears for now. However, Fauci cautioned against overinterpreting early data because the population covered skewed heavily toward younger demographics who are less likely to be hospitalized. Just as importantly, investors need to concern themselves with not only the health risks here but also the economic threat omicron could pose. If global governments fear the variant, then it’s a legitimate risk -- irrespective of the facts. With U.K. scientists warning about the variant’s high transmissibility, neither stocks or cryptos are out of the woods. Back in the States, the UCLA Anderson Forecast recently scaled back its prognostications regarding employment gains and total jobs in California for 2022. Personally, I don’t find the reductions in these projections to be alarming. Nevertheless, investors should probably focus on governmental responses as they consider which major cryptos to buy.

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Beyond the omicron uncertainty, investors should also consider geopolitical risks. Obviously, U.S. relations with China and Russia -- already poor when President Joe Biden took the helm -- are escalating in tension. Hopefully, cooler heads will prevail. Still, it’s something to put on your radar before you take too many wagers with cryptos. Bitcoin (CCC:BTC-USD) Ethereum (CCC:ETH-USD) Binance Coin (CCC:BNB-USD) Solana (CCC:SOL-USD) Cardano (CCC:ADA-USD) XRP (CCC:XRP-USD) Polkadot (CCC:DOT-USD)