At Samuel Indyk
Investing.com – Il and other major cryptocurrencies followed the sell-off of ‘traditional’ financial markets, struck by concerns over the spread of the overdraft in South Africa.
Selling risk assets is not confined to the cryptocurrency space, with safe-haven currencies strengthening such as e and general decline in government bond yields. Today’s sell is leading several analysts to reconsider the idea of Bitcoin as a safe haven, a status acquired in recent months in the wake of concerns about the inflationary context.
Btc, which is the largest cryptocurrency by market capitalization (around $ 1 trillion), fell to around $ 54,000, its lowest level since October 9. The $ 4,000 threshold (-9.4%) has tested it downwards, while,,, and are traded with losses between -2% and -10%.
“The spread of the new variant, particularly in southern African countries, could further wilt investors’ appetite,” said cryptocurrency exchange Yuya Hasegawa Bitbank. “Bitcoin’s upside is likely to be limited and the market should prepare for further losses.”
After today’s decline, the is trading near its 100-day moving average at around $ 53,950, but a drop below that level could open the door to $ 52,500 before the $ 50,000 level comes into play.
However, much attention in the short term will hinge on the new variant B.1.1.529 COVID and the impact it could have on global financial markets. For analysts of Danish bank (CSE :), there are three questions that need to be answered: Is the new variant more transmissible? Is it more dangerous? Is it able to evade the immunity given by vaccines?
“Unfortunately – the Danish bank explain – until there is no more data, the answers to these questions will not be available immediately and the uncertainty surrounding the new variant could persist for some time yet”.
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