Bitcoin, Ether Immersion as a variant of the virus promotes wider global sales Crypto News

Bitcoin fell 9 percent to $ 53,552, and Ether fell more than 12 percent on Friday.

Bitcoin fell 20% from its record earlier this month as a potentially disturbing new variant of coronavirus prompted traders to throw out risky assets around the world.

The world’s largest cryptocurrency fell 9% to $ 53,552 on Friday. Ether, the second-largest digital currency, fell more than 12%, while the broader Bloomberg Galaxy Crypto Index fell to 7.7%.

A new variant identified in South Africa pushed up liquidation in global markets, with European stocks falling the most since July and US stock benchmarks also being lower at the start of trading. Bitcoin was not spared from carnage despite being seen by many crypto fans as a hedge against the turmoil in the financial market.

“For us, it’s still generally an active risk,” said Ross Mayfield, an analyst at Baird’s investment strategy. “When things get scary, there will be vendors.”

Meanwhile, gold – a traditional safe haven asset – rose 1.33% on Friday morning, although precious metals have still declined significantly until the Bitcoin year.

“I think the role that Bitcoin will eventually play is still uncertain. The role played by something like Gold and Treasury is pretty popular at the moment. So the conclusion is that when things get really ugly, the usual safe havens will rise to the top,” Mayfield added.

The variations caused by the market were not the only negative factor in the weight of Bitcoin. Entering this week, analysts cited some cryptocurrency hurdles, including U.S. tax information requirements for digital currencies, an increased regulatory cut by China and a new bill that could ban India from banning most private cryptocurrencies.

Bitcoin has been under pressure since reaching a record high of $ 69,000 this month with excitement over the first U.S. exchange-traded fund linked to the future of digital assets. Today, the 100-day moving average of $ 53,940 is close, which served as support for the late September retreat.

“Ironically, yesterday afternoon’s crypto markets started to look pretty optimistic in anticipation of the Santa Claus rally,” said Jonathan Cheesman, head of cryptocurrency FTX exchange sales and institutional sales on Friday. “It’s going to be a nervous weekend for sure.”

As always, the bulls remain committed to believing that organizations and more retail investors will adopt virtual currencies.

“This is a market reaction / correction within an upward trend,” said Vijay Ayyar, head of Asia-Pacific at Luno Pte, noting that options expiration days – like Friday – can often be variable. He said the drop between $ 48,000 and $ 50,000 could be more worrying and that “20% delays are normal as we have often seen in an upward trend in Bitcoin.”

Katie Stockton, founder of Fairlead Strategies LLC, said in a statement Friday that closing two consecutive days below the $ 52,900 level would increase the risk of a deeper setback to the next level of support near $ 44,200. But that’s not a reason to sell, he said.

“We would hold long positions, for now, given the likelihood of a snapback rally from overcrowded territory in the coming days, given that the medium-term momentum continues to rise,” Stockton said.

For now, the pullback of Bitcoin is a side-by-side demonstration of the decline of the global market for the new variant identified as B.1.1.529, as policy makers move to reshape cross-border travel policies.

The biggest token has risen more than 85% this year.