Popular Cryptocurrencies Dive Amid COVID Concerns
Cryptocurrency investors should be used to turbulence in markets now. It seems like every few months; there is a crash. Unfortunately, cryptocurrencies aren’t independent enough to stand on their own but rather move as a group. As such, when one currency drops, the whole market is down, regardless of the quality of each individual project. And due to a new COVID strain discovered in South Africa, another massive crypto selloff has begun.
For example, Bitcoin has lost more than a fifth of its all-time-high value, which it reached a few weeks ago, on November 10. In a single day, Bitcoin tumbled around 8.10%, sitting at $55,051 at the time we’re writing this. As is tradition, other cryptocurrencies followed suit, with the permanent runner-up, Ethereum, losing more steam than BTC itself at about -10.5%. Ethereum currently sits at $4,024, erasing the steady climb it’s experienced during November.
No other cryptocurrencies have it well, either. The famous meme coin Dogecoin dropped by around 8.5% and is trading at about $0.203. The somewhat younger version of DOGE, SHIB, is in a similar boat, losing 4.40% of its value but providing more resistance. No matter which cryptocurrency you look at, you’d be hard-pressed to find a green chart on Friday.
The New COVID strain, called B.1.1.529, emerged in southern Africa and still seems relatively contained. The exact extent of the virus strain’s capabilities and mutations remains unknown, and so does the possible impact of its spread. The WHO plans to meet late Friday to discuss the strain’s possible affect and steps to combat its spread. However, COVID isn’t exclusively at fault for the global cryptocurrency markets experiencing such a significant decline in value overall. Namely, the EU also recently introduced some new laws and regulations, which, while limiting crypto, seem to focus on protecting market participants.
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