Bitcoin fell more than 9% on Friday, dragging down smaller tokens, after the discovery of a new, potentially vaccine-resistant one. coronavirus The variance saw investors shed riskier assets because of the perceived safety of bonds, the yen and the dollar.
Bitcoin, the largest digital currency, fell as much as 9.2% to $ 53,551, its lowest level since October 10. The second largest cryptocurrency ether fell more than 13% to its lowest level in a month as investors ditched crypto.
Bitcoin, whose 13-year life has been punctuated by bouts of extreme volatility, was on track for its biggest one-day drop since September 20. It has plummeted by more than a fifth since hitting a record high of nearly $ 70,000 earlier this month. The scientists said the coronavirus variant, detected in South Africa, Botswana and Hong Kong, has an unusual combination of mutations and can either evade immune responses or make it more transmissible.
"The spread of (the variant), especially to other countries, could further weaken investors' appetite," Yuya Hasegawa said on the Tokyo-based exchange Bitbank. "BTC's advantage will likely be limited and the market should prepare for further losses." Bitcoin hit an all-time high of $ 69,000 earlier this month as more large investors embraced cryptocurrencies, with many drawn to its alleged inflation-resistant qualities.
Others have piled on the digital token with the promise of quick profits, an allure that has been heightened by historically low or negative interest rates. However, bitcoin's volatility has persisted, raising questions about its suitability as a stable store of value. The last one was $ 3,924. It is down nearly 20% from its record on November 10.
