In Brief:
- Due to the recent corona outbreak, investors dumped their risky assets including Bitcoin and ETH.
- Bitcoin slumped to $55,075, from an all-time-high of over $69,045, suffering an overall drop of 20.34%
- As a result, the liquidation reached over $780 million.
The crypto market has seen a dramatic drop in value as a result of the current Covid wave in South Africa. According to CoinGecko, Bitcoin’s value has dropped to $54000 today, a further 22 percent drop from the all-time high of over $69,045 set earlier in November.
The overall decline of around 22% in Bitcoin is caused by a multitude of factors including – increasing selling pressure, market saturation, as well as the end of year profit-taking. Out of which, 8% drop in a single day was seen after the recent corona outbreak. Ethereum fell as much as 10% to $3982. The overall global crypto market cap has also 8.3%
Along with the crypto market, global stock markets and U.S. stock index futures saw large chunks of their value wiped out this morning. Traders all around the world are now abandoning risky assets due to the new virus strain. Consequently, the liquidation reached over $780 million according to BYBT. Several factors might drive demand up or down in response to crises. In March, the crypto market witnessed the same impact, when covid was at its peak.
Numerous risks circling the crypto sector. Analysts have identified a number of crypto stumbling blocks, including tax reporting requirements for digital currencies in the United States and China’s tightening regulatory system.
The world health crisis had led some speculative investors to question the theory that digital assets is or has ever been a safe-haven asset. The crypto market, on the other hand, has had multiple downturns that have eventually recovered.
