New York: Bitcoin fell sharply overnight, lost $10,000 in a tight market, and then made up for part of the loss on Saturday morning.
Late Friday, this frequently volatile cryptocurrency suddenly fell sharply to $42,296, losing nearly 20% of its value.
But by 1600 GMT on Saturday, the virtual currency had recovered some of its lost ground, and the transaction price was US$48,210, a 10% drop from Friday.
Due to weak technology stocks and concerns about the new Omicron variant of Covid-19, all leading Wall Street indicators closed down on Friday.
“Digital assets got pushed around by the broader risk of conditions related to Omicron and expectations of a more aggressive Fed, but didn’t properly sell off until Friday, on contagion from equities,” said Martha Reyes, research director at the Bequant digital asset brokerage and exchange.
Reyes said the decline in the value of bitcoin, often prone to violent swings, was not entirely surprising. Since late November, she said in a note, it had been “stuck in a narrow range” while some investors wanted to unwind their positions.
Anto Paroian, the chief operating officer at crypto hedge fund ARK36.com, said current price levels “aren’t unexpected,” just weeks after the currency set a record of $68,363 before falling and repeatedly failing to again pass the $60,000 mark.
“During previous Bitcoin bull markets violent swings of 20-30% happened a few times before the market topped,” he said in a note.