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.
Bitcoin sank 7% in the past 24 hours to $54,561, according to Coin Metrics data, its lowest level since October 8. The cryptocurrency is down 20% from an all-time high of nearly $69,000. in advance this month.
Bear markets are usually identified with a fall of 20% or more from recent rallies.
Other cryptocurrencies also fell on Friday. ether, the second largest cryptocurrency, fell more than 10% to $4,007, while XRP It fell 10% to about 95 cents.
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.
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.