Bitcoin (BTC) Enters Bear Market In New Covid Variant
Bitcoin prices fell sharply amid the massive sell-off in global stocks.
Luke McGregor | Bloomberg | Getty Images
Bitcoin It fell sharply along with other assets on Friday, hitting a six-week low and officially entering bear market territory.
The world’s largest cryptocurrency has sank 8% in the past 24 hours to $54,177, according to Coin Metrics data, its lowest level since early October. Bitcoin is down 20% from an all-time high of almost $69,000 in advance this month.
Bear markets are usually identified with a fall of 20% or more from recent rallies.
Cryptocurrencies are falling along with other risky assets amid panic over a new, highly volatile variant of the coronavirus that was first detected in South Africa.
The World Health Organization on Thursday gave a briefing on the new variant, known as B.1.1.529 and believed to contain more than 30 mutations. The United Kingdom and other countries have Temporarily suspended flights From six African countries in response.
Investors are retreating from riskier assets for the relative safety of bonds, with US Treasury yields moving sharply downward. Bond yields move inversely with prices.
Bitcoin proponents have often described Bitcoin as “digital gold,” referring to the yellow metal’s status as a safe haven asset.
Cryptocurrency investors say the virtual currency provides a store of value as well as a hedge against inflation.
It is worth noting that Bitcoin is a volatile asset and is known to experience price fluctuations of more than 10% in a single day.