The new version of the coronavirus, which was first detected in southern Africa, is causing a stir in global markets, with its effects reverberating across all markets, including cryptocurrencies.
The world’s largest cryptocurrency fell 9% to $53,552 on Friday. It is currently trading at $54,695, down 7.30% at the time of publishing this report
Ether, the second largest digital currency, is down more than 12%, currently trading 9.69% lower at $4,087. Other coins like Dogecoin down 8.3% while Shiba Inu is down around 5%
Bitcoin is down 20% from all-time highs earlier this month. The world’s largest cryptocurrency has been under pressure since reaching a record nearly $69,000 earlier this month on enthusiasm for the first US exchange-traded fund involving futures on the digital asset. It is currently sitting near its 100-day moving average of $53,940, which acted as support during its pullback in late September.
A new variant identified in southern Africa prompted liquidations in global markets, European stocks fell the most since July and US equity benchmarks were also lower in early trade. Bitcoin was not spared from the carnage, despite being seen by many crypto enthusiasts as a hedge against financial-market turmoil.
The variant news that rocked the market was not the only negative factor weighing on Bitcoin. Coming in this week, analysts cited several crypto hurdles, including US tax-reporting requirements for digital currencies, China’s intense regulatory clampdown, and India’s vision on a new bill that could ban most private cryptocurrencies. .
(with inputs from agencies)
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