Bitcoin slumps as new COVID-19 variant spooks markets: Check latest price here

Bitcoin on Friday tumbled almost 8 per cent after the news of a new COVID-19 variant emerging from South Africa shook markets. The largest cryptocurrency saw a plunge of 20 per cent from a record high of almost $70,000 earlier this month, according to reports.

As on Friday, Bitcoin fell as much as 7.8 per cent to $54,377, its lowest since October 12 when it hit $57,572.51. At the time of publishing the story, the crypto's value recovered slightly but was still down 6.6 per cent at $54,723.77, according to CoinGecko. Moreover, the global crypto market capitalisation declined over 5 per cent to $2.5 trillion, as per CoinGecko.

Other digital coins also saw a fall over the virus concerns. Ethereum, the second-biggest by market capitalisation, slumped as much as 11.6 pee cent to its lowest in seven days. It was last at $4,072.11, down almost 18 per cent from its record high hit on November 10.

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.

The new COVID-19 variant identified in southern Africa led to investors dump riskier assets across markets with European stocks falling the most since July while emerging markets slumped.

The B.1.1.529 variant has been detected in relatively small numbers in Botswana, Hong Kong and South Africa but the authorities are perturbed by its high number of mutations that could evade the body’s immune response and become more transmissible.

World Health Organization’s Technical Advisory Group on Virus Evolution (TAG-VE) earlier today announced that it will meet to discuss whether this variant should be classified as a variant of interest or a variant of concern.