It’s A Bleak Friday For Crypto Markets Too

Global markets across asset classes tumbled on Friday amidst reports of a new and possibly vaccine-resistant coronavirus strain. Stock market barometers fell across regions. Dollar, Crude Oil etc., also couldn’t survive the bloodbath. Bond yields too plunged reflecting widespread risk-off sentiment. Cryptocurrency markets dropped in sync with the global sentiment contagion. Gold however bucked the trend and attempted to live up to its safe-haven image.

Overall crypto market capitalization currently stands at $2.46 trillion. Only 10 of the top 100 cryptocurrencies (as per market capitalization) are still in overnight positive territory. Around 30 percent have lost more than 10 percent overnight.

Bitcoin (BTC) plunged to a low of $53,625.21, from the day’s high of $59,367.97. It is currently trading at $54,568.13, around 21 percent below its all-time high of $68,789.63 touched earlier in the month. Only 71 percent holders are in-the-money at current prices.

Ethereum (ETH) also dropped to a low of $3,933.51, from the day’s high of $4,550.84, to currently trade at $4,099.13. This is almost 16 percent below its all-time-high of $4,859.50 touched in mid-November. Only 85 percent holders are in-the-money at current prices.

Binance Coin (BNB) has fallen by more than 6 percent whereas Dogecoin (DOGE) and Solana (SOL) have dropped by 7 percent. SHIBA INU (SHIB) is down around 4 percent only. Terra (LUNA) has lost only less than 3 percent.

Cardano (ADA), XRP (XRP), Polkadot (DOT), Avalanche (AVAX), Crypto.com Coin (CRO) and Litecoin (LTC) have declined more than 9 percent.

Despite the sell-off, Metaverse category market capitalization has increased by 5 percent in the past 24 hours.

While the entire world waits for clarity on how much more transmissible and virulent the new variant can be, the financial markets would be more concerned of the impact on the nascent economic recovery and the impact on valuations.

Crypto enthusiasts on the other hand would need to avidly introspect Bitcoin’s response to the market turbulence and the gaps in Bitcoin’s aspirations to transcend to a safe-haven status.

Gold, with its overnight gain of more than a percent has reiterated its monopoly as the ultimate safe haven. Cryptocurrency markets have to mature more to reach that enviable position.

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