Bitcoin fell dramatically overnight, losing $ 10,000 in value in a nervous market before recouping some of its losses on Saturday morning.
At one point on Friday night, the often volatile cryptocurrency saw a sudden sharp drop to $ 42,296, losing nearly 20 percent of its value.
But by 1600 GMT on Saturday, the virtual currency had regained some ground, trading at $ 48,210, down 10 percent from Friday.
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Major Wall Street indicators ended in the red on Friday amid weakness in tech stocks and fears over the new Omicron variant of Covid-19.
"Digital assets were affected by the broader risk of conditions related to Omicron and expectations of a more aggressive Fed, but did not sell properly until Friday, due to contagion from stocks," said Martha Reyes, director of Bequant digital asset research. brokerage and exchange.
Reyes said the decline in the value of bitcoin, often prone to violent swings, was not entirely surprising. Since late November, he said in a note, it had been "stuck in a tight range," while some investors wanted to undo their positions.
Anto Paroian, COO of crypto hedge fund ARK36.com, said current price levels "are not unexpected," just weeks after the coin set a record high of $ 68,363 before falling and repeatedly failing to return. to pass the $ 60,000 mark.
"During previous Bitcoin bull markets, violent swings of 20-30% occurred several times before the market hit a top," he said in a note.
AFP
