Bitcoin Stable as Stocks Sell Off Amid New Coronavirus Variant

26 Nov 2021 · 3rd Party Analysis

Bitcoin Stable as Stocks Sell Off Amid New Coronavirus Variant


In Summary:

  • Bitcoin price stable near $56,000 per coin as traders remain optimistic for future outlook
  • Stocks in the US drop over 2.5% ahead of Friday’s open as concerning Covid-19 virus appears

What’s Trading in the Markets?

The price of bitcoin remains stable early Friday as financial markets turned defensive amid a new coronavirus variant. More precisely, the orange coin is trading near $56,000 as crypto traders are holding the line amid looming uncertainty.

Bitcoin edged up to a session high of $59,300 in early trading today. Later, however, the original cryptocurrency slipped and got back into its weekly consolidation around $57,000.

Still, bitcoin bulls and the general crypto market is anticipating the next big move that could shoot digital assets to new highs.

Presently, the entire market gyrates near a valuation of $2.7 trillion. For comparison, the all-time high achieved by the crypto space is $3 trillion set earlier this month. On this note, major tokens are hovering about 10% to 18% from their records.

With this in mind, bitcoin is on track to log a second straight week in negative territory. In other words, the price of bitcoin is lower by about 3% for the week. Since its record high, bitcoin has lost about 16% of its price.

Dive Deeper in the Financial World

Meanwhile, US stocks are selling off in pre-market trading. A concerning new variant of Covid-19 is sweeping across South Africa. As a result, a wave of countries, including Singapore and the UK, is now introducing travel restrictions to and from Africa.

By the looks of it, in the holiday-shortened regular session on Friday, investors would endure wild volatility. It appears that the new strain, already discovered in Hong Kong, is weighing heavily on the market sentiment.

To illustrate, Dow Jones futures slipped as much as 900 points, or over 2.5%, before the opening bell in New York. Moreover, S&P500 futures and Nasdaq futures dropped 2%, and 1.3%, respectively.

What to Expect in the Markets?

Today’s US session will finish earlier, at 01:00 pm. In the half-day of dealmaking, elevated jitters could define market moods. Further, uncertainty over the weekend could also increase the risk-averse approach to equities.

The US dollar could go through higher-than-usual volatility as updates around the new Covid-19 strain appear. Presently, the USD/JPY is among the biggest losers of the day. Almost 1% of the pair’s value has been erased today.

While the US dollar remains fairly strong, the move is fueled by investors flocking to safety in the Japanese yen. The currency of Japan is considered a safe haven in times of heightened uncertainty and gloomy market conditions.

Speaking of safe havens, gold, traditionally regarded as a store of value, inflation hedge and a safe haven, hovers unchanged. Today, the precious metal is modestly higher at a price of $1,807 per troy ounce. To this end, keep an eye on gold as it may see increased volumes today amid the growing uncertainty.

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