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. 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Largest DeFi exploit of 2022 wipes out $80 million from Qubit's Ethereum-BSC bridge

Ethereum-BSC bridge of Qubit Finance suffered a hack to the tune of $80 million in the largest DeFi exploit of 2022. Hackers exploited the "deposit" function to steal cryptocurrencies from Qubit Finance. 

More Ethereum News

Decentraland bulls go against the bearish trend, targeting $2.60

Decentraland (MANA) price has been on the front foot in a challenging market environment. MANA bulls look ready to eke out  28% of gains for this week after the price lifted from the 200-day Simple Moving Average (SMA) and is now set to pop and stay above the monthly S1 support level.

More Decentraland News

Charles Hoskinson awaits launch of Vaccuumlabs DEX on the Cardano network

Cardano network activity hit a peak with a spike in transactions on the network. Charles Hoskinson, the CEO of IOHK, is awaiting the launch of Vaccuumlab's DEX on the Cardano network. 

More Cardano News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

More Bitcoin News

Bitcoin: Federal Reserve cannot tame BTC’s uptrend

Bitcoin experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed’s decision was announced. As losses have extended and Bitcoin has entered into the $30,000 zone, concerns regarding BTC being in a bear market have increased.

Read full analysis