Why Crypto market is down? Black Friday wipes billions from BTC, ETH, SOL, DOGE and more
BTC's price fell to its lowest since mid-October taking it to under the $55,000 mark. The second-largest coin, Etthereum price dropped near to $4,000 per ether level.
New Delhi: Another day another market crash, Cryptocurrency market showed red indexes and investors are calling it Red Friday, not Black Friday. World’s largest cryptocurrency, Bitcoin and other coins’ prices fall sharply as the discount shopping event Black Friday kicks off.
Not just the crypto market but other crypto markets around the world also witness a huge crash over the fear of the fresh Covid-19 variant.
BTC’s price fell to its lowest since mid-October taking it to under the $55,000 mark. The second-largest coin, Etthereum price dropped near to $4,000 per ether level.
Wide Crypto sell-off hit has wiped around $200 billion from the combined crypto market capitalization since Monday. “With increased equity market volatility, crypto investors should be on guard,” said Alex Kuptsikevich, FxPro senior market analyst
Analysts have warned that the Bitcoin price fall will affect the smaller coins including ETH, BNB, SOL, ADA, XRP, and DOGE.
As per Forbes, Kuptsikevich thinks that BTC has begun acting as something of a so-called safe-haven asset as the retail investors are buying bitcoin in times of increased uncertainty.
”With the WHO discussing new virus variants and restrictions on air travel, retail investors have developed a reflex to buy crypto on coronavirus fears,” he added
Crypto investors and enthusiasts are confident that the latest crash is only temporary and a result of Black Friday and the Thanksgiving Day holiday.
deVere Group chief executive Nigel Green has said that “The crypto market has been hit by a temporary sell-off that mirrors that of the global stock market amid concerns about a new Covid-19 variant that’s been discovered in southern Africa,”
Before the major sell-off, BTC saw a wave of buy interest in the market from the investors who are looking to shield themselves from run-away inflation that has spiked around the world in quarters.
While analysts believe that this crash is just for the short term and the market will rebound quickly as investors once again focus on the heightening global inflation fears. It is being noted that BTC drop came amid the fall in the BTC hash rate.