After the identification of a new, potentially vaccine-resistant coronavirus variant triggered investors to sell riskier assets for perceived safety in bonds, the yen and the dollar, Bitcoin dropped almost 8%.
Bitcoin‘s value is around $54,377, this is the lowest figure since October 12th.
Bitcoin price falls due to the new coronavirus variant
The new variant, detected in South Africa, Botswana and Hong Kong, was characterized as having an unusual combination of mutations that might allow it to avoid the body’s immune system or transmit more readily.
Yuya Hasegawa from Bitbank stated: “The spread of (the variant), especially to other countries, could wither investor appetite further. BTC’s upside will likely be limited and the market should brace for further loss.”
Bitcoin has risen to an all-time high of $69,000 this month as more significant investors have entered the market, excited by its supposed inflation-proof characteristics.
Despite its popularity, Bitcoin has remained highly volatile, prompting concerns about its viability as a store of value.
Smaller coins also experienced a drop, as they generally are affected by Bitcoin’s status. For example, Ethereum, the second most valuable cryptocurrency by market capitalization, fell as much as 11.6%.