Cryptocurrency market last week: Participating in the high-risk asset sell-off

Bitcoin and the virtual currency market joined the decline in high-risk assets when the Omicron variant prompted investors to “turn on” risk-avoidance mode.

The largest digital currency in the world is once down 7.5% to 54,430.35. please USD in 11/26 Ethereum – the second largest digital currency – fell 9% while the Bloomberg Galaxy Crypto Index fell 4%.

The decline came as soon as the Dow Jones fell by more than 900 points, the S&P 500 lost more than 2%, while the oil price “evaporated” 13%.

New strain Omicron

Although newly discovered, the Omicron strain – the virus strain with a significantly higher number of mutations than the Delta strain – has already spread to at least two continents.

South African scientists discovered a new strain of Covid-19 called Omicron on November 25. This strain of the virus is an unusual combination of many mutations that raise concerns that the virus can better penetrate the immune system and spread more easily within the community.

The World Health Organization (WHO) classified the Omicron strain as a Concerning Variant (VOC) on November 27th. “This variant has a large number of mutations, one of which is worrying. Preliminary evidence suggests a higher risk of reinfection with this variant than with other strains,” said the WHO.

So far, South Africa, Botswana, Hong Kong and Belgium are the places where positive cases of the new strain of the virus have been recorded. If Omicron is indeed resistant to a vaccine or is spreading faster than the Delta variant, that variant will pose a major threat as the world gradually emerges from the pandemic.

There is currently no evidence that the strain is contagious, has a high mortality rate, or reduces the effectiveness of the vaccine. However, the European Commission continues to recommend member states to restrict travel to countries in southern Africa. Some experts fear that Omicron is the reason for the high number of Covid-19 infections in this area.

The new tribe from South Africa sparked a worldwide sell-off of risky assets, with the stock, oil and cryptocurrency markets all collapsing.

Bitcoin is falling more than 20% from its all-time high

On the morning of November 27, Bitcoin was hovering at $ 54,626, nearly 7% less than late last week. Compared to the record high of almost VND 69,000 USD, the largest digital currency in the world, fell more than 20% and entered a bear market.

Meanwhile, Ethereum – the second largest digital coin – fell nearly 4% to 4.141 USD.

Other cryptocurrencies in the top 10 fell even more, with Solana down 9%, Cardano 16% and Dogecoin down nearly 12%.

The market capitalization of cryptocurrencies also fell by more than 100 Million dollars to 2.475 Billion USD this weekend.

Top 10 digital coins

Source: CoinMarketCap