Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain
|- Over $265 billion wiped off the overall crypto market capitalization in a bloodbath as news of the new Covid strain breaks out.
- Bitcoin, Ethereum and XRP prices have tumbled over 6%, and the top 10 cryptocurrencies are trading at a steep discount.
- The new Covid variant identified in South Africa has spurred liquidations in crypto and equities markets.
As news of the new Covid variant spreads, asset prices in crypto and equities markets have plunged, withBitcoin price dropping below $55,000 for the first time in the past 30 days.
Crypto bloodbath continues as Bitcoin, Ethereum and XRP prices tumble
Bitcoin, Ethereum and XRP prices have dropped over 6% since news of a new Covid strain broke out. The strain was identified in South Africa and global markets, and equities have tanked.
Over $265 billion was wiped off the overall crypto market within an hour of the news; cryptocurrencies are now trading at a steep discount on Black Friday.
The asset's price has dropped below $55,000 for the first time in over a month. Ethereum price has dropped over 9%, and the Bloomberg Crypto Index (considered a benchmark for the performance of cryptocurrencies against USD) has plummeted 4%.
The news of the new Covid variant spurred liquidations across European stocks, emerging markets and global equities.
Russ Mould, investment director at AJ Bell, believes that the new Covid strain is responsible for the crypto market bloodbath. Mould told Forbes,
Forget Black Friday; today has been renamed Red Friday after the color of share price screens as stocks slump globally on fears over a new Covid strain.
Proponents believe that investors' reaction to news of the Covid strain is classic risk-off action. If fear and uncertainty grow, governments may likely reintroduce lockdown restrictions that stress the economy.
The decline in Bitcoin, Ethereum and XRP prices implies that cryptocurrencies are yet to be accepted as a safe haven during unprecedented times.
Alex Kruger, a cryptocurrency analyst, believes that traders are currently pricing in higher odds of low liquidity.
Global markets spooked today on this new covid variant. Big moves across global markets. Growth stocks trashed, crude oil lower, rates down, rotation back to tech. Traders pricing in higher odds of renewed lockdowns on low liquidity conditions. It's OK, no covid in the metaverse https://t.co/WF1Zv4pfxM
— Alex Krüger (@krugermacro) November 26, 2021
Global markets spooked today on this new covid variant. Big moves across global markets. Growth stocks trashed, crude oil lower, rates down, rotation back to tech. Traders pricing in higher odds of renewed lockdowns on low liquidity conditions. It's OK, no covid in the metaverse https://t.co/WF1Zv4pfxM
— Alex Krüger (@krugermacro) November 26, 2021
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.