Monday, November 29, 2021

Bitcoin and other cryptocurrencies are crashing amid fears about a new variant of Covid

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Bitcoin and other cryptocurrencies have fallen sharply as fears over the new coronavirus outbreak rocked traditional financial markets as well.

The global crypto market fell 7.4 percent on the last day after the dramatic slump on Friday morning.

Bitcoin lost 6.5 percent and Ethereum lost 7.8 percent.

No major cryptocurrencies were able to avoid the decline as the entire market fell dramatically on Friday morning.

The problems in the crypto markets came when the traditional financial markets were shaken by fears about the new coronavirus variant and its importance for the economy.

The shares of the major airlines fell between 5 and 6 percent in premarket trading, as the new variant discovered in South Africa prompted the European Union, Great Britain and India, among others, to announce stricter border controls.

The cruise lines Carnival Corp and Royal Caribbean Cruises each slumped about 9%.

Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Wells Fargo and Morgan Stanley all fell between 3 and 4 percent as traders cut their recent bets on rate hikes.

Stronger-than-expected US inflation and expectations that Jerome Powell would be the more restrictive choice for the Fed chairman had confirmed bets that the central bank will likely hike rates several times over the next year, which is what US stocks were up to this week will plunge their record highs.

“Investors don’t know if stocks could take another economic blow with less central bank support as central banks wage a double battle that is intensifying on both fronts: inflation rises and COVID news becomes worrying.” ” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“The problem is, they cannot use the same tools to drive back inflation and the economic downturn. And the choice will be difficult. “

The CBOE volatility index, popularly known as Wall Street’s fear meter, jumped to its highest level since September 20.

Additional coverage from Reuters

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