Bitcoin Tumbles Over 9 Percent, Smaller Tokens Take a Hit as Coronavirus Variant Shakes Markets

Bitcoin on track for its biggest one-day drop since September 20.

Bitcoin Tumbles Over 9 Percent, Smaller Tokens Take a Hit as Coronavirus Variant Shakes Markets

Photo Credit: Pexels

Bitcoin fell as much as 9.2 percent to $53,551 (roughly Rs. 40,19,200)

Highlights
  • Bitcoin value dropped to its lowest since October 10
  • Ether — the second biggest cryptocurrency — fell over 13 percent
  • Bitcoin hit an all-time high earlier this month
Advertisement

Bitcoin tumbled over nine percent on Friday, dragging smaller tokens down, after the discovery of a new, potentially vaccine-resistant coronavirus variant saw investors dump riskier assets for the perceived safety of bonds, the yen and the dollar.

Bitcoin, the largest digital currency, fell as much as 9.2 percent to $53,551 (roughly Rs. 40,19,200), its lowest since October 10. The second largest cryptocurrency Ether fell over 13 percent to its lowest in a month as investors ditched cryptocurrencies.

Bitcoin, whose 13-year life has been peppered by bouts of extreme volatility, was on track for its biggest one-day drop since September 20. It has slumped by more than a fifth since hitting a record high of almost $70,000 (roughly Rs. 52,53,700) earlier this month.

Scientists said the coronavirus variant, detected in South Africa, Botswana and Hong Kong, has an unusual combination of mutations and may be able to evade immune responses or make it more transmissible.

"The spread of (the variant), especially to other countries, could wither investor appetite further," said Yuya Hasegawa at Tokyo-based exchange Bitbank. "BTC's upside will likely be limited and the market should brace for further loss."

Bitcoin hit an all-time high of $69,000 (roughly Rs. 51,78,700) earlier this month as more large investors embraced cryptocurrencies, with many drawn to its purported inflation-resistant qualities.

Others have piled into the digital token on the promise of quick gains, a draw that has been heightened by record low or negative interest rates. Yet Bitcoin's volatility has lingered, drawing questions over its suitability as a stable store of value.

Ether was last at $3,924 (roughly Rs. 2,94,500). It is down almost 20 percent from its record high hit on November 10.

© Thomson Reuters 2021


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Bitcoin, Ether, cryptocurrency
WhatsApp Said to Win Approval to Double Payments Offering to 40 Million Users in India
Amazon's Black Friday Greeted by Climate Activists, Strikes in Europe
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »