Cryptocurrencies Fall As Total Market Drops Below $2.5 Trillion
By 7 AM ET, the total market capitalization of all cryptocurrencies had fallen to $2.4 trillion, down nearly 9 percent over the past 24 hours.
Bitcoin – the largest cryptocurrency in the world – It fell nearly 8 percent Since Thursday morning.
The cryptocurrency was last seen trading at $53,580, a six-week low and down more than 20 percent from an all-time high of around $69,000 it hit earlier this month.
Other cryptocurrencies, big and small, also fell sharply on Friday morning.
Ether, the original coin of the Ethereum blockchain, has fallen more than 10 percent in the past 24 hours, as has Binance, the third largest cryptocurrency.
The cryptocurrency sale came as concerns about a new variant of COVID-19 in South Africa scared investors and set Pressure on global stock markets.
But many crypto enthusiasts have hailed Bitcoin as something of a safe haven for investors, serving as a digital alternative to gold, which has long been a favorite of investors when they are concerned about the macro economy, as it has during the pandemic.
However, with Bitcoin and other cryptocurrencies dropping amid the uncertainty on Friday, the value of gold soared as investors sought to protect their assets.
Separate factors, including a bill being prepared by lawmakers in India that would further regulate and potentially restrict cryptocurrency trading, are also affecting the price of digital tokens.
Bitcoin and other cryptocurrencies have been dropping steadily for a few weeks. And this week, several tech nonprofits touting the potential for growth have seen their stocks plummet, suggesting investors are abandoning volatile and risky assets for more proven investments that are likely to withstand an uncertain macro environment.