A new coronavirus variety was recently discovered, sending shockwaves across global financial markets. As a result, stocks and commodities have been negatively affected over the past few hours.
The bearish trend has now moved to the cryptocurrency market, with Bitcoin and Ether both losing significant amounts in the previous 24 hours.
BTC and ETH Down by More Than 5%
Bitcoin, the top cryptocurrency, and Ether, the second-largest coin by market valuation, have both dropped by more than 5% in the last 24 hours. The drop comes after the cryptocurrency market as a whole has performed poorly over the previous two weeks.
Earlier this year, Bitcoin achieved a new all-time high of $69k. However, it has since dropped by more than 20% from that price. BTC is presently down more than 7% and trading below the $55,000 mark for the first time since October.
Ether has also suffered massive losses, shedding more than 8% of its value in the last few hours. Following recent losses, ETH is presently trying to maintain its position above the $4,000 mark. Bitcoin and other top cryptocurrencies’ losses are linked to the overall performance of the global financial markets.
A new Coronavirus strain was found in South Africa earlier today, sending shockwaves across global financial markets. With the exception of a handful, stocks, commodities, and cryptocurrencies are all trading in the red at the time of this report.
BTC and ETH Could Suffer Further Losses
If additional investors respond to the present news, the losses might grow in the next hours and days. The prospect of another round of shutdown might potentially have an impact on the pricing of Bitcoin and other cryptocurrencies.
The BTC/USD chart is now bearish, with the MACD line falling below the neutral zone. Meanwhile, the RSI may shortly go below 35, suggesting that Bitcoin is now oversold and may suffer significant losses in the coming hours.
In terms of annual performance, BTC and ETH remain favorable. Despite recent dismal performance, the coins’ prices have increased by more than 100% since the beginning of the year.