As a result, crypto assets prices have dropped by a significant amount during the overnight trading session. The cryptocurrency economy’s value has fallen by 8% within the past 24 hour. As the 20 top-ranked digital currencies lost anywhere from 6% to 20%, crypto markets have experienced a loss of more than $22Billion.
The Fear of B.1.1.529 Variant is a Problem for Global Markets
The news that Covid-19’s new variant B.1.1.529 has spread beyond South Africa is shaking global markets. According to reports, the B.1.1.529 variant of Covid-19 is much more contagious that the Delta and has around 30 variants. The headlines caused markets to crash in almost every country around the world and investors tied to oil and gas sectors to plummet. By way of example, Brent crude dropped in price by 5.3%.
On Friday, the economist and bitcoin advocate Alex Krüger tweeted about how the new variant has roiled global markets. “Global markets spooked today on this new Covid variant,” Krüger said. “Big moves across global markets. Global markets see big moves: Growth stocks destroyed, crude oil down, rates lower and rotation back to technology. Traders’ pricing in higher odds of renewed lockdowns on low liquidity conditions. It’s OK, no Covid in the metaverse,” the economist added.
$22 Billion in Value Exits Crypto Economy Leading to an Accumulation of ‘Downtrend Momentum’
The crypto economy lost 8% in value during the overnight sessions on Thursday and into Friday’s mornings trading sessions. Bitcoin (BTC), which was trading at over $58K per unit on Thursday night (EST), had fallen to just $54K by Friday morning. Bitcoin has fallen 7.9% in the past 24 hours, and its market capital is now just over $1 trillion. Ethereum (ETH), which lost 9.4% over the past day, is trading at just below $4K per unit Friday.
The 11,000+ crypto coins in existence lost more than $22 billion in value and there’s around $200 billion in global trade volume today. Stablecoin trading accounts for more than half the volume, with $115.1 million in 24 hour stablecoin volume. On Friday, Du Jun from Huobi Global shared some market insights tied to bitcoin’s (BTC) current state.
“According to data from Huobi Global, BTC has continued to fall since the morning, and its momentum has increased sharply in the afternoon, and it quickly fell to 54,500,” the Huobi Global analyst said. “The daily decline has exceeded 4,000, and it is still falling. This current situation has passed the 55500 mark in the previous round of decline. From a long-term perspective, the downward trend of BTC prices has not changed, and a new round of downward adjustment has arrived,” the analyst added. Du Jun’s market outlook further noted:
Judging from the 4h k-line, the transaction volume increased sharply, which intensified the changes in bitcoin’s price. Price crossed the Bollinger Band’s lower rail, EMA lines dropped, DIF crossed DEA down significantly which was a sell signal. Although the downtrend could weaken, and possibly even shift horizontally, the long-term trend remains the same. From the daily perspective, today’s bitcoin price jumped out of the horizontal adjustment in the past week, and formed a clear linear response to the downtrend one week ago, which means that the adjustment of bitcoin’s price last week is only accumulating the downtrend momentum. The price correction is significant in the near-term.
Coronavirus, Insitutional, and Coronavirus Fears
Fxpro Senior Market Analyst Alex Kuptsikevich explained to Bitcoin.com News how global markets have been a drag on cryptocurrency markets. “Because of the institutional love affair, bitcoin is substantially vulnerable to moments of exit from risky assets when it sells off everything, regardless of the outlook,” Kuptsikevich explained to Bitcoin.com News in a markets update note sent on Friday. “[Bitcoin’s]There are severe risks of cryptocurrency falling because of this sell-off. From a different perspective, retail investors have developed a reflex to buy crypto on coronavirus fears, with WHO discussing new virus variants and restrictions on air travel,” Kuptsikevich added. According to the Fxpro analyst:
Real crypto-enthusiasts, long-term crypto investors and those who are serious about cryptos might consider purchasing it in the wake of the financial crisis.
How do you feel about current bitcoin price and crypto economy? Comment below and let us know how you feel about the subject.
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