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    BTC sinks below $55,000 as COVID variant spooks market

    By Daniela Ešnerová


    Updated

    Golden coins with bitcoin (BTC) logo.
    A Reddit user hailed Black Friday prices in cryptomarkets as bitcoin (BTC) fell bellow $55,000 – Photo: Shutterstock

    Fears of a new variant of coronavirus, which could evade vaccine protections, hit cryptocurrencies market harder than equity markets, as the global market capitalisation sank 7.0% over the last 24 hours to $2.44trn in London morning trading.

    For comparison, FTSE-100 index was down 3% in London morning trading.

    News about the discovery of the B1.1.529 variant coincided with bitcoin options expiry date on Friday 26 November, 2021, which traditionally means higher volatility in cryptocyrrency markets.

    Bitcoin's (BTC's) 24-hours low was $54,086.04, according to CoinMarketCap.com.

    Meanwhile, pseudonymous Dutch economist, known as Plan B, took to Twitter noting that one of his propretory bitcoin price prediction model is likely to miss the November close, which was forecasted to be $98,000. 

    US100

    17,612.50 Price
    -0.430% 1D Chg, %
    Long position overnight fee -0.0262%
    Short position overnight fee 0.0040%
    Overnight fee time 21:00 (UTC)
    Spread 1.8

    BTC/USD

    64,466.95 Price
    -0.600% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 106.00

    XRP/USD

    0.53 Price
    -1.200% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.01168

    ETH/USD

    3,150.32 Price
    -0.860% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 6.00

    “Floor model $98K Nov close will probably be a first miss (after nailing August, September, October),” Plan B posted on Twitter. He then added, that his stock-to-flow model - widely known in among cryptomarket watchers - is “not affected and indeed on track towards $100K.”

    Quote of the day: “It's Black Friday prices.”

    Cryptocurrency investors took to social media to reveal which coins they are buying in this “dip”. A Reddit user, going by a nickname of Spreizbacken, here expressed their emotions sparked by the market sell-off.

    “It's Black Friday prices. This triggers so much dopamine in my brain it feels like I'm actually high!”

    Round-up of coins by market capitalisation

    As of 09:30 UTC:

    • Bitcoin (BTC) was down 4.04% to $55,119.37
    • Ethereum (ETH) lost 4.14% and was trading at $4,099.44
    • Binance coin (BNB) sunk 5% to $580.69

    Winners and losers:

    • Gala (GALA) token, a blockchain gaming developer that allows gamers to use their unique non-fungible token (NFT) characters in gameplay, was up a whopping 169% over the last seven days of trading making it the biggest weekly gainer among the top 50 digital coins. This comes after NFT was named as 2021’s word of the year by Collins dictionary earlier this week 

    • Avalanche (AVAX) and Crypto.com (CRO) lost 17.83% and 16.96% respectively and topped table of the biggest weekly losers among top 50 cryptocurrencies by market capitalisation. This was however, against their record breaking rallies, that brought these tokens to number 11 and 13 in the ranking of the biggest coins

    Read more:  Global risk assets slump as new Covid variant emerges

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
    You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
    CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
    CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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