The crypto economy has lost 8% of its worth in the last 24 hours, as a large number of crypto asset values fell sharply during overnight trading sessions. Crypto markets have lost more than $22 billion in value, with the top 20 digital currencies losing ranging from 6% to 20% of their worth.
Bitcoin, Ethereum, and XRP have all lost over 8% of their value, and the top ten cryptocurrencies are now trading at a significant discount.
Today, headlines claim that a new Covid-19 variation known as B.1.1.529 is spreading outside of South Africa, where it was found. The B.1.1.529 variety, which has roughly 30 mutations, is considered to be more contagious than the Delta variant. Markets in practically every country around the world began to dive as soon as the news broke.
The unfavourable news that shook markets wasn’t the only thing dragging on Bitcoin. Analysts noted a number of crypto roadblocks heading into this week, including U.S. tax reporting requirements for digital currencies, China’s tightening regulatory clampdown, and India’s plans to introduce new laws that could outlaw most private cryptocurrencies.
The price declines in Bitcoin, Ethereum, and XRP indicate that cryptocurrencies have yet to be accepted as a safe haven in these turbulent times.According to Alex Kruger, a cryptocurrency analyst, traders are currently pricing in a larger probability of poor liquidity.
Although the B.1.1.529 variation has been found in modest quantities in Botswana, Hong Kong, and South Africa, officials are concerned about the high number of mutations that could allow the virus to elude the immune system and become more transmissible.
The Technical Advisory Group on Virus Evolution (TAG-VE) of the World Health Organization announced earlier today that it will meet to debate whether this variant should be categorised as a variant of interest or a variant of concern.