Over the past 24 hours, the crypto economy has lost 8% in value as a large number of crypto asset prices have dropped significantly during the nightly trading sessions. Crypto markets lost more than $ 22 billion in value, with the major digital currencies in the top 20 losing between 6% and 20%.
Global markets fear variant B.1.1.529
Global markets are shaken today as headlines state that a new variant of Covid-19 called B.1.1.529 spreads beyond South Africa where it has been discovered. The B.1.1.529 variant is said to be more contagious than the Delta variant and has around 30 mutations. As soon as the headlines grabbed the headlines, markets in almost every country in the world began to collapse and investments related to the oil and gas sector were bombarded. For example, the international benchmark for a barrel of Brent crude fell 5.3%.
On Friday, economist and bitcoin advocate Alex Krüger tweeted about how the new variant has shaken global markets. “Global markets were scared today by this new variant of Covid”, Krüger noted. “Big movements in world markets. Growth stocks collapsed, crude oil fell, rates fell, the return to technology. Pricing traders in higher probabilities of renewed foreclosure under conditions of low liquidity. It’s okay, no Covid in the metaverse, ”added the economist.
$ 22 Billion Worth Leaves Crypto Economy, Leading To Accumulation Of ‘Downtrend Moment’
The crypto economy lost 8% in value during Thursday night sessions and Friday morning trading sessions. As of 11:00 p.m. EST on Thursday, bitcoin (BTC) was trading for over $ 58,000 per unit, but on Friday morning, BTC changed hands for just over $ 54,000 per unit. Bitcoin is down 7.9% in the last 24 hours and its market cap is just above the $ 1,000 billion mark. Ethereum (ETH) has lost 9.4% in the past day and each ether changes hands for just over $ 4,000 per unit on Friday.
The more than 11,000 existing crypto coins have lost over $ 22 billion in value and the global trade volume is around $ 200 billion today. Stable trading accounts for more than half of the volume recorded with $ 115.1 billion in 24-hour stable trading volume. On Friday, Du Jun from Huobi Global shared some market information related to the current state of bitcoin (BTC).
“According to data from Huobi Global, BTC has continued to decline since the morning, and its momentum increased sharply in the afternoon, and it quickly fell to 54,500,” the Huobi Global analyst said. “The daily decline has passed 4,000, and it continues to decline. The current position broke the low point of 55500 in the last bearish cycle. From a long-term perspective, the downward trend in BTC prices has not changed and a new round of downward adjustments has arrived, ”the analyst added. Du Jun’s market outlook further noted:
Judging from the k 4h line, the trading volume has increased sharply, which has intensified the price changes of bitcoin. The price crossed the lower rail of the Bollinger Band, the EMA lines moved lower, and the DIF crossed the DEA significantly lower, which formed a sell signal. The downtrend can be expected to weaken and even adjust horizontally in the short term, but the long term downtrend remains unchanged. From a daily perspective, today’s bitcoin price broke out of the horizontal adjustment over the past week and formed a clear linear response to the downtrend from a week ago, which means that the bitcoin price adjustment last week only accumulates the downtrend. In the short term, pay attention to the magnitude of the price correction.
Institutional and coronavirus fears
Alex Kuptsikevich, senior market analyst at Fxpro, also spoke about how the swerve in global markets has put pressure on crypto markets. “Due to the institutional love affair, bitcoin is significantly vulnerable to times when exiting risky assets when it sells everything, regardless of the outlook,” Kuptsikevich told Bitcoin.com News in a note from market update sent on Friday. “[Bitcoin’s] serious selling risks drag all of the cryptocurrency with it. From a different perspective, retail investors have developed a crypto buying reflex over coronavirus fears, with the WHO discussing new virus variants and restrictions on air travel, ”Kuptsikevich added. The Fxpro analyst concluded:
This means that true crypto enthusiasts and long-term crypto investors may consider buying it due to the severe slowdown in the exit of traditional financial institutions.
What do you think about the current state of bitcoin prices and the crypto economy? Let us know what you think of this topic in the comments section below.
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