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Bitcoin (BTC) enters bear market on new Covid variant

The global sell-off of equities led to a sharp drop in Bitcoin prices.

Luke MacGregor  | Bloomberg | Getty Images

BitcoinThe dollar fell along with other assets Friday. It hit a 6-week low and entered bear market territory.

According to Coin Metrics data Bitcoin fell 7% to $54,561 in 24 hours, the lowest point since Oct. 8. Bitcoin is currently down 20% from its record high of $69,000. earlier this month.

Bear markets are typically defined by a 20% decline or more from recent highs.

Others cryptocurrencies plunged on Friday as well. EtherThe second-biggest cryptocurrency, cryptocurrencies, dropped more than 10%, to $4,007 XRPSliding 10% to approximately 95c.

A panicked new coronavirus variant that has been heavily mutated in South Africa means digital currencies and other risk assets are falling along with them.

On Thursday, the World Health Organization gave an overview of B.1.1.529 which contains more than 30 mutations. Other nations and the U.K. have also adopted this variant. temporarily suspended flightsIn response, six African countries were selected.

Bitcoin is often called “digital Gold” by its supporters, referring to the status of this yellow metal as a safe-haven asset.

The virtual currency is a valuable asset for crypto investors. It can also be used to hedge against inflation.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.