Bitcoin fell nearly eight percent on Friday after the discovery of a new, potentially vaccine-resistant coronavirus variant, with investors dumping riskier assets for the perceived safety of bonds, the yen and the dollar.
Bitcoin, the largest digital currency, fell by 7.8 pc to $54,377, its lowest since October 12.
It was on track for its biggest one-day drop since September 20, and has fallen by more than a fifth since hitting a record high of nearly $70,000 earlier this month.
The variant, found in South Africa, Botswana and Hong Kong, has an unusual combination of mutations and may be able to evade the immune response or make it more transmissible, the scientists said.
“spread [the variant], especially for other countries, could further reduce investor appetite,” said Yuya Hasegawa at Tokyo-based exchange BitBank.
“The upside of BTC is likely to be limited and the market should be prepared for further losses.”
Bitcoin reaches all-time high of $69,000 earlier this month As more large investors embrace the cryptocurrency, many were drawn to its perceived inflation-resistant properties.
Others have piled into digital tokens on the promise of quick profits.
Yet it remains highly volatile, questioning its suitability as a stable store of value. The smaller coins that went with bitcoin also fell.
Ether, the second largest by market capitalization, fell as much as 11.6 percent to its lowest level in a week.
It was at $4,070, down about 18 percent from its record high on November 10.
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