Bitcoin crashes 9%, down 20% from record highs as new variant spooks investors

The new type of Corona virus, which was first found in South Africa, is disturbing global markets, with its resounding effect in all markets including cryptocurrencies.

The world’s largest cryptocurrency fell 9% to $53,552 on Friday. It is currently trading down 7.30% at $54,695 at the time of this report

Ether, the second largest digital currency, is down more than 12% and is currently trading down 9.69% at $4,087. Other coins like Dogecoin are down 8.3% while Shiba Inu is down about 5%

Bitcoin is down 20% from its highs earlier this month. The world’s largest cryptocurrency has been under pressure since hitting a record high of nearly $69,000 earlier this month due to enthusiasm for the first US exchange-traded fund linked to futures contracts on a digital asset. It is currently standing near the 100-day moving average of $53,940, which acted as support during the late September pullback.

A new variable identified in South Africa prompted liquidations in global markets, with European stocks falling the most since July, and US stock indexes also falling in early trade. Bitcoin did not escape the carnage despite being seen by many crypto enthusiasts as a hedge against financial market turmoil.

The various news that the turbulent markets were not the only negative factor weighing on Bitcoin. This week, analysts cited a number of crypto hurdles including US tax reporting requirements for cryptocurrencies, intense regulatory tightening from China, and India’s sights on a new bill that could ban most private cryptocurrencies.

(with input from agencies)

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