The largest digital currency, Bitcoin, fell as much as 9.2% to $53,551, its lowest since October 10. The COVID era hit pretty hard!
Ether’s second-largest cryptocurrency fell over 13% to its lowest in a month as investors ditched cryptocurrencies.
“The spread of COVID-19, especially to other countries, could wither investor appetite further,” said Yuya Hasegawa at Tokyo-based exchange Bitbank. “BTC’s upside will likely be limited, and the market should brace for further loss.”
Bitcoin hit an all-time high of $69,000 earlier this month as more large investors embraced cryptocurrencies, with many drawn to its purported inflation-resistant qualities.
Others have piled into the digital token on the promise of quick gains, a draw that has heightened record low or negative interest rates. Yet Bitcoin’s volatility has lingered, drawing questions over its suitability as a stable store of value. Ether was last at $3,924. It is down almost 20% from its record high hit on Nov 10.
To be optimistic now that the vaccination scheme is at full speed, we can be cautiously hopeful that this rough patch will soon be over. But, as we learn to fit into the new normal of the post-pandemic world, what role will cryptocurrencies and blockchain technology play?