Tom Wilson

LONDON, (Reuters) – Bitcoin fell almost 8% Friday as investors shifted riskier assets to the safety afforded by bonds, the yen, and the dollar following the discovery of a potentially deadly coronavirus.

The biggest digital currency, X, dropped 7.8% to $54,377. Its lowest point since Oct. 12.

It had been on the verge of its largest one-day fall since Sept. 20, but has plummeted by more than half since hitting an all-time high of $70,000 earlier this year.

Scientists believe the unusual mutation, which was found in South Africa and Botswana, may allow it to bypass immune systems or be more transmissible.

Yuya Hasegawa, Bitbank’s Tokyo-based representative said that “the spread of (the variant), particularly to other countries could further reduce investor appetite.” The upside of Bitcoin is likely to be modest and markets should expect further losses.

Bitcoin reached an all-time record of $69,000 in April as large investors began to embrace cryptocurrencies. Many were attracted by its inflation-resistant properties. Many others have invested in the digital token to reap the quick profits.

However, it remains highly volatile. This raises questions as to whether or not this is a good place for storing value.

Coins smaller than bitcoin fell, as well.

Ether fell to 11.6% from its highest level in one week, making it the second largest market capitalisation. Last week, it stood at $4.070. This was nearly 18% lower than its record-setting high of Nov. 10.