Bitcoin fell to a two-month low. During the day, the rate of the world's main cryptocurrency fell by almost 8%. Now 1 BTC is worth about $54,500. However, there are cryptocurrencies that have fallen even more.
For example, Polkadot is down 11%, XRP and Ethereum are down 9%. Minus 8% for Dogecoin, minus 9% for Avalanche, which, contrary to the general market decline, was growing for a long time. Shiba Inu is losing over 10%. As a result, the cryptocurrency market capitalization fell by 10.5% to $2.39 trillion over the day. But what is the reason?
Bitcoin, like all other cryptocurrencies, is an asset. Its value depends on the ratio of purchases and sales in the market. Apparently, investors began to sell off risky assets (and cryptocurrencies are just that kind of asset) amid alarming news about the new B.1.1.529 coronavirus strain - traders are worried that developments will follow the worst scenario with global lockdowns and another brake on the global economy. Even oil, which has been actively growing recently, is falling against this backdrop: Brent and WTI futures have fallen about 10% in 24 hours. So far, no one knows how the situation with B.1.1.529 will develop further, but analysts have begun to adjust their forecasts about Bitcoin's value growth. In fact, few people think we'll see $100,000 per BTC this year anymore.
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