Bitcoin, the largest digital currency, dropped as much as 7.8% to $54,377, its lowest since the record of October 12, and was on track for its biggest one-day drop since September 20. A new coronavirus variant identified in Southern Africa is considered as the main reason for the price slump on Friday.
Yuya Hasegawa at Tokyo-based exchange Bitbank said:
“The spread of (the variant), especially to other countries, could wither investor appetite further,”. He added: “BTC’s upside will likely be limited and the market should brace for further loss.”
In fact, the volatility of the market in recent days spurred investors across global markets to dump risk assets for the safety of bonds, the yen, and the dollar.
Earlier this month, bitcoin hit its sky-high price of almost $70,000 as the exploding crypto market, embraced numerous investors to buy this token for all the potentials and promise of quick gains. Still, it has remained highly volatile.
Bitcoin itself has been under pressure since U.S. tax-reporting requirements and China’s strengthening regulatory clampdown for digital currencies. And now, new virus strain risks undercutting liquidity and risk appetite for the speculative sector. With all the issues Bitcoin facing, drawing us to question its suitability as a stable store of value.
However, even if the price falling down, we can’t deny the tremendous revenue gained from this token. And its price still stirring up more than 80% compared to last year.
Will bitcoin turn back to the track and hit another climax? For an outlook of changes in bitcoin price in the of 2021, you can check out our topic.