Bitcoin fell more than 9% on Friday, pulling smaller tokens down, after the discovery of a new, vaccine-resistant coronavirus variant has seen investors dump assets. riskier assets because of the perceived safety of bonds, the yen, and the dollar.
Bitcoin, the largest digital coin, fell as much as 9.2% to $53,551 (approximately Rs 40,19,200), the lowest level since October 10. The second largest cryptocurrency. Ether fell more than 13% to a one-month low as investors abandoned the cryptocurrency.
Bitcoin, whose 13-year lifespan has been bolstered by extreme volatility, is on track for its biggest one-day drop since September 20. It is down more than a fifth since hitting a near record high. $70,000 (about Rs). 52,53,700) earlier this month.
The coronavirus variant, discovered in South Africa, Botswana and Hong Kong, has an unusual combination of mutations and could evade immune responses or make it more contagious, scientists say.
“The spread of[variant]especially to other countries, could weaken investor appetite even further,” said Yuya Hasegawa at Tokyo-based exchange Bitbank. “BTC’s upside is likely to be limited and the market will prepare for further losses.”
Bitcoin hit an all-time high of $69,000 (approximately Rs 51,78,700) earlier this month as more major investors adopted the cryptocurrency, with many attracted by its purportedly anti-inflationary qualities its destination.
Others have flocked to the digital token with the promise of quick returns, which are buoyed by record low or negative interest rates. However, Bitcoin’s volatility persists, raising questions about its suitability as a stable store of value.
Ether was last at $3,924 (approximately Rs. 2,94,500). It is down almost 20% from the record level reached on November 10.
© Thomson Reuters 2021
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