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Bitcoin Suddenly Collapses | VAT News

Bitcoin lost $ 10,000 in less than an hour overnight from Friday to Saturday, or nearly 20%, before recovering a bit, but remained affected by the caution prevailing in the financial markets.

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At around 4:00 p.m. GMT on Saturday, the virtual currency was trading at $ 48,210, down 10% from Friday night.

Around 05:00 GMT, it had suddenly dropped to $ 42,296, with no specific explanation a priori.

“Cryptocurrencies were rocked by the broader risk conditions attached to (the Omicron variant) and expectations of a more aggressive (US monetary policy), but really started nosing around on Friday, in the wake of the decline in equity markets, ”commented Martha Reyes, who heads research for cryptocurrency exchange Bequant.

The main Wall Street indices actually ended in the red on Friday, driven by weakness in technology stocks.

The decline in bitcoin, used to violent movements, is not completely surprising given that the currency has been moving since the end of November in a limited trading range and that some investors may have wanted to unwind certain positions, said Ms. Reyes in a note. .

Same feeling for Anto Paroian, of the fund specializing in ARK36 cryptocurrencies.

After hitting a record $ 68,363 on November 10, the virtual currency fell back down and “has repeatedly failed to cross the $ 60,000 threshold”, he said in a note recalling that bitcoin has regularly recorded falls of 20% to 30% before recovering.

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