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The new COVID-19 variant coming from South Africa has brought more pain to all financial markets. As the futures contracts of the world’s most prominent stock indexes have slumped, the cryptocurrency space experienced a massive correction. Bitcoin dumped to a six-week low, while some altcoins saw double-digit price drops.
Bitcoin and Global Markets Tumble
The primary cryptocurrency was on its way towards $60,000 yesterday after recovering from the previous drop below $56,000. It came roughly $500 away from challenging that coveted level, but it failed, and the landscape changed vigorously hours later.
Bitcoin dumped by $5,000 in a few hours to an intraday low of $54,300, which became the lowest price point since October 13th. As reported earlier, this enhanced volatility caused mass pain for leveraged traders as the liquidations skyrocketed to over $700 million on a daily scale.
BTCUSD. Source: TradingView
This price crash coincides with similar developments in the global stock markets. Prompted by fears of a new COVID-19 variant coming from some African nations, the futures contracts of Dow Jones, the S&P 500, Nasdaq, and other popular indexes plummeted.
The Dow’s futures are down by more than 2%, those for the S&P 500 by nearly 1.7%, while oil prices dropped even harder. US crude oil futures declined by over 5.5%.
The situation in Asia is identical, with Japan’s Nikkei and the Hong Kong Hang Seng losing around 2% each.
Altcoins Have it Worse
As it usually happens when bitcoin heads south, so do the alternative coins. Ethereum exceeded $4,500 yesterday at one point, but a substantial correction of over $400 has driven it south below $4,100 as of now.
Binance Coin traded north of $610 but it’s down to $580 now. Solana (-6.5%), Cardano (-5%), Ripple (-7%), Polkadot (-8.5%), Dogecoin (-7%), Shiba Inu (-2%), and Litecoin (-9%) are deep in red as well.
Avalanche and CryptoCom’s token have lost the most from the larger cap alts. AVAX has dumped by 12% to below $110, while the recent high-flyer CRO has plummeted by more than 20% and sits beneath $0.7.
The crypto market cap is down by nearly $200 billion in a day to below $2.5 trillion on CoinMarketCap.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.