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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. 
Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain
Ekta MouryaEkta MouryaFXStreet

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. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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