‘Be On Guard’—Black Friday Crypto Price Crash Wipes Billions From Bitcoin, Ethereum, BNB, Solana, Cardano, XRP And Dogecoin

Bitcoin and cryptocurrency prices fell sharply as the Black Friday discount shopping event kicked off, with stock markets around the world plummeting due to fresh concerns about a new variant of Covid-19.

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Forget Black Friday; Today was renamed Red Friday after the color of stock price screens as stocks drop globally on fears of a new Covid strain, AJ Bell investment director Ross Mold said in comments via email.

Bitcoin price has dropped to its lowest price since mid-October, down 5% in the last 24 hours and dropping below $55,000 per bitcoin. Meanwhile, Ethereum, the second largest cryptocurrency after Bitcoin, fell towards the closely watched level of $4,000 per ether.

The massive selloff of bitcoin and cryptocurrencies – which also hit BNB, solana, cardano, Ripple’s XRP and dogecoin – has wiped out about $200 billion from the combined cryptocurrency market value since Monday.

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More from ForbesThe new German chancellor, Olaf Scholz, has issued a dire warning on Bitcoin and cryptocurrencies ahead of the recent price rally

“With the increasing volatility of the stock market, crypto investors should be wary,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email comment. He warned that the bitcoin price is vulnerable to broad market moves, in part due to recent institutional investment that could have a knock-on effect on smaller cryptocurrencies including Ethereum, Binance’s BNB, Solana, Cardano, Ripple’s XRP, and dogecoin

“Because of the institutional love affair, bitcoin is highly vulnerable to a risky asset exit moment when it sells everything, regardless of expectations. Its sell-off could also drag the entire crypto market down with it.”

However, Kuptsikevich also believes that bitcoin has begun to act as a so-called safe haven asset, where retail investors buy bitcoin in times of heightened uncertainty.

He added, “From a different perspective, retail investors have developed a crypto-buying reflex due to coronavirus concerns, as the World Health Organization discusses new viral variants and restrictions on air travel.”

Bitcoin and other crypto investors are confident that the recent crash is only a temporary picture, exacerbated by Black Friday and the Thanksgiving holiday.

“The cryptocurrency market has been hit by a temporary sell-off that reflects the global stock market amid concerns about a new variant of Covid-19 detected in South Africa,” Nigel Green, crypto investor and CEO of deVere Group, said in an email. comments.

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More from ForbesCrypto Price Prediction: Volcanoes Could Push Bitcoin to $1 Million in Five Years, Leaving Ethereum, BNB, Solana, Cardano, XRP and Cro in the Dust

“Due to a small wave of uncertainty, the parallel moves of the cryptocurrency and stock markets highlight that digital assets are now mainstream. The headlines have led to an uninterrupted reaction, becoming more and more apparent as most of the market is celebrating Thanksgiving and not participating.”

Ahead of the recent sell-off, bitcoin has seen a flurry of interest from investors looking to protect themselves from runaway inflation that has surged around the world in recent months.

“this is [bitcoin price crash] It will be short-term, as the crypto markets are likely to rebound in the near term as investors once again focus on rising global inflation fears.”

Meanwhile, it was noted that the bitcoin price drop came amid a drop in the bitcoin hash rate – a measure of computing power directed at the bitcoin network.

Jason Dean, an analyst at the Bitcoin and Crypto Research Group, said via Twitter DM: Foreman Low hash rate.

“While there are other factors in play, my initial view is that this is an overreaction by the market to something that appears to be a problem, but is not in real numbers — that is the power of a decentralized system. However, in a long-term short, traders can Expect a bumpy ride as the market makes its own assessment.”

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