The newest COVID-19 concerns have stirred both the traditional and cryptocurrency markets, as Bitcoin (BTC) continues to trade below 60k, same as other altcoins that have taken a dive, as well as the downturn of futures contracts on Wall Street.
The newly mutated South African COVID-19 variation has wreaked havoc on financial markets worldwide. While the world’s foremost stock index futures contracts have plummeted, it is the 6th week of Bitcoin (BTC) continuously trading low, whereas other altcoins have experienced double-digit price corrections.
In attempts to bounce back from the dip under $56k, Bitcoin (BTC) was sharply heading towards reaching $60k on Wednesday. While it was a $500 difference and quite a close call, the tables turned quickly as the biggest cryptocurrency failed to reach that goal.
Bitcoin (BTC) took a $5,000 hit in a matter of hours, retracting to the October 13th trading price of $54,300. The increased volatility created massive agony for leveraged traders, with daily liquidations reaching over $700 million.
This recent development in price drop corresponds to comparable trends in worldwide stock markets. Fears of a new COVID-19 variation emerging from various African countries triggered a drop in Dow Jones, S&P 500, Nasdaq, and other major index futures contracts.
The US crude oil futures took quite a hit of 5.5%, followed by the Dow Jones futures that went down by 2.2%, and the S&P 500 fell by 1.7%.
In Asia, the Nikkei 225 and Hong Kong’s Hang Seng have both lost roughly 2%.
As witnessed many times before, when Bitcoin (BTC) takes the plunge, other altcoins follow suit soon after. While Ethereum (ETH) appeared to reach above $4500, it fell to $4,100 hours later. Binance Coin (BNB) has corrected to $580 after it was trading over $610 the other day.
Other altcoins have been trading in the red as well, with Litecoin (LTC) leading with a 9% drop, Polkadot (DOT) 8.5%, Dogecoin (DOGE), and Ripple (XRP) both losing 7%. Shiba Inu (SHIB) fell by 2%. Solana (SOL) has lost 6.5%, followed by Cardano (ADA) with 5%.
From a $3 trillion market capitalization, the cryptocurrency market has fallen down to $2.5 trillion, losing $500 billion in the recent crash.
Also read: China May Establish a CBDC Exchange to Promote the Use of the Digital Yuan