During the last 24 hours, the crypto economy has lost 8% in
value as a great number of crypto asset prices dropped significantly
during the overnight trading sessions. Crypto markets lost more than $22
billion in value as the leading digital currencies in the top 20
standings lost anywhere between 6% to 20%.
Global Markets Lurch in Fear Over B.1.1.529 Variant
Global markets are shaken today as headlines declare that a new
Covid-19 variant called B.1.1.529 is spreading beyond South Africa where
it was discovered. The B.1.1.529 variant is said to be more contagious
than the Delta variant and it is said to have around 30 mutations.
As soon as the headlines broke, markets in nearly every nation
worldwide started to tank, and investments tied to the oil and gas
sector dive-bombed. For instance, the international benchmark for a
barrel of Brent crude slipped in value by 5.3%.
On Friday, the economist and bitcoin advocate Alex Krüger tweeted
about how the new variant has roiled global markets. “Global markets
spooked today on this new Covid variant,” Krüger said.
“Big moves across global markets. Growth stocks trashed, crude oil
lower, rates down, rotation back to tech. Traders’ pricing in higher
odds of renewed lockdowns on low liquidity conditions. It’s OK, no Covid
in the metaverse,” the economist added.
$22 Billion in Value Exits Crypto Economy Leading to an Accumulation of ‘Downtrend Momentum’
The crypto economy lost 8% in value during the overnight sessions on
Thursday and into Friday’s mornings trading sessions. At 11:00 p.m.
(EST) on Thursday, bitcoin (BTC) was swapping for over $58K per unit but by Friday morning, BTC
changed hands for just over $54K per unit. Bitcoin is down 7.9% during
the last 24 hours and its market cap is just above the $1 trillion mark.
Ethereum (ETH) lost 9.4% during the last day and each ether is changing hands for just above $4K per unit on Friday.
The 11,000+ crypto coins in existence lost more than $22 billion in
value and there’s around $200 billion in global trade volume today.
Stablecoin trades command more than half of the recorded volume with
$115.1 billion in 24-hour stablecoin trade volume. On Friday, Du Jun
from Huobi Global shared some market insights tied to bitcoin’s (BTC) current state.
“According to data from Huobi Global, BTC
has continued to fall since the morning, and its momentum has increased
sharply in the afternoon, and it quickly fell to 54,500,” the Huobi
Global analyst said. “The daily decline has exceeded 4,000, and it is
still falling. The current position has broken through the minimum point
of 55500 in the last round of decline. From a long-term perspective,
the downward trend of BTC
prices has not changed, and a new round of downward adjustment has
arrived,” the analyst added. Du Jun’s market outlook further noted:
Judging from the 4h k-line, the transaction volume
increased sharply, which intensified the changes in bitcoin’s price. The
price crossed to the lower rail of the Bollinger Band, EMA lines turned
down, and DIF crossed DEA downward significantly, which formed a sell
signal. It can be expected that the downtrend will weaken and even
adjust horizontally in the short term, but the long-term downtrend
remains unchanged. From the daily perspective, today’s bitcoin price
jumped out of the horizontal adjustment in the past week, and formed a
clear linear response to the downtrend one week ago, which means that
the adjustment of bitcoin’s price last week is only accumulating the
downtrend momentum. In the short term, pay attention to the magnitude of
the price correction.
Insititutional and Coronavirus Fears
Alex Kuptsikevich, the Fxpro senior market analyst, also explained
how the lurch in global markets put pressure on crypto markets. “Because
of the institutional love affair, bitcoin is substantially vulnerable
to moments of exit from risky assets when it sells off everything,
regardless of the outlook,” Kuptsikevich explained to Bitcoin.com News
in a markets update note sent on Friday. “[Bitcoin’s] severe sell-off
risks dragging the entire cryptocurrency down with it. From a different
perspective, retail investors have developed a reflex to buy crypto on
coronavirus fears, with WHO discussing new virus variants and
restrictions on air travel,” Kuptsikevich added. The Fxpro analyst
concluded:
source link : https://news.bitcoin.com/crypto-economy-slides-8-in-value-shaking-out-billions-blame-placed-on-new-covid-variant/This means that real crypto-enthusiasts and long-term
investors in cryptos may consider buying it out of the severe downturn
on the exit of traditional financial institutions.
