Crypto News

Cryptocurrencies tumble as coronavirus variant shakes markets

Bitcoin plunged more than nine percent on November 26, as smaller tokens fell. This was after investors sold riskier assets to get the safety and security of bonds, the dollar, and the yen.

Bitcoin, the world’s largest digital currency, dropped 9.2 percent to $53,551, marking its lowest point since October 10. As investors abandon cryptocurrencies, the second-largest cryptocurrency was down 13 percent.

Bitcoin’s 13-year-old history has been marked by extreme volatility. It was poised for its largest one-day drop in over a year. Since hitting an all-time high of nearly $70,000 earlier in the month, it has fallen by more than a fifth.

Scientists believe the coronavirus variant found in South Africa, Botswana and Hong Kong has an unusual combination mutations that may allow it to evade immune reactions or make it more transmissible.

Yuya Hasegawa, Bitbank’s Tokyo-based exchange, stated that “the spread of (the variant), particularly to other countries could further reduce investor appetite.” “BTC’s upside is likely to be limited, and the market should prepare for further losses.”

Bitcoin reached an all-time high in June at $69,000, as larger investors began to embrace cryptocurrencies. Many were drawn to its inflation-resistant properties.

Many others have invested in the digital token to reap the quick gains and record low interest rates. However, bitcoin’s volatility persists and raises questions about its viability as a stable store-of-value.

Ether last stood at $3,924. It has fallen almost 20% from November 10, when it reached its record high of $3,924.