New COVID Variant FUD Drives Bitcoin Down To $54k

News of the COVID version 2 is causing investors to panic. Bitcoin crashed down to $54k while markets around the world fell into the red.

Bitcoin Plunges To $54k As News Of COVID Variant Emerges

Investors around the globe are worried about the new variant of COVID, which is causing financial markets to fall into red Friday.

BBC reported that scientists discovered this mutation in South Africa.

Not much is clear about the variant’s properties yet, but what looks to be most worrying so far is that this version of COVID may be vaccine resistant due to the large number of mutations.

The Director of the Centre for Epidemic Response and Innovation in South Africa, Prof. Tulio de Oliveira, said “This variant did surprise us, it has a big jump on evolution [and] many more mutations that we expected.”

It may be that the animal is immune to the vaccine. If this happens, vaccinations efforts may not work and countries around the globe may consider imposing new restrictions.

Investors are now beginning to take a more conservative approach when it comes to their assets, due in part to the new COVID fears. Bitcoin is now down to $54k due to this sell-off

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This chart shows how Bitcoin has performed over the past 24 hours.

Bitcoin Price Chart

BTC prices fall | Source: BTCUSD on TradingView

Bitcoin currently is down by 8%, but it dropped to $53.5k earlier in the day, as the graph below shows.

BTC’s value has fallen to almost $200M in 12 hours. Traders are trying to find the bottom using leveraged longs.

Bitcoin Liquidations

 Source: coinglass| Source: coinglass

What Could Be Next For BTC’s Price?

Just yesterday, Bitcoin’s price finally started to show some recovery from the decline that followed its new all-time high as the crypto broke past $59k once again.

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This chart shows how the cryptocurrency price has changed over the past few hours.

Bitcoin Price Crashes

BTC prices almost began to rise before this crash. Source: TradingView.| Source: BTCUSD on TradingView

But, this was before the recovery became a reality. The news of the COVID variant came out, and once more the cryptocurrency price crashed.

At the moment, it’s unclear which direction Bitcoin might go in next. The coin may have already hit the bottom, but it’s possible that as more news about the variant surfaces, the coin may travel further down still.

Featured image by Unsplash.com. Charts from TradingView.com

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