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    Bitcoin enters bear market territory as risk assets plunge on new Covid variant

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Bitcoin as one point traded as low as $53,549, its lowest level since early October.

    The cryptocurrency is down 20% from an all-time high of nearly $69,000 which it hit earlier this month.

    Bear markets are typically defined by a decline of 20% or more from recent highs.

    Bitcoin fell sharply alongside other assets on Friday, hitting a seven-week low and officially entering bear market territory.

    The world’s biggest cryptocurrency sank 7% in the last 24 hours to $54,572, according to Coin Metrics data. Bitcoin as one point traded as low as $53,549, its lowest level since early October.

    Bitcoin is down 20% from an all-time high of nearly $69,000 which it hit earlier this month. Bear markets are typically defined by a decline of 20% or more from recent highs.

    Other cryptocurrencies also plunged Friday. Ether, the second-biggest crypto, fell nearly 10% to $4,081, while XRP slumped 9% to around 96 cents.

    Digital currencies are falling in tandem with other risk assets amid panic over a new, heavily-mutated variant of the coronavirus first detected in South Africa.

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    Global stock markets were sinking Friday, with European stocks set for their worst session in more than a year and U.S. stock futures down sharply.

    Investors are retreating from riskier assets for the relative safety of bonds, with U.S. Treasury yields moving sharply lower. Bond yields move inversely to prices.

    Bitcoin has often been described by its proponents as “digital gold,” a reference to the yellow metal’s status as a so-called safe haven asset.

    Crypto investors say the virtual currency offers a store of value as well as a hedge against inflation.

    It’s worth noting that bitcoin is a volatile asset, and has been known to experience price swings of more than 10% on a single day.

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