Bitcoin stages bounceback after brutal Black-Friday selloff
BNN Bloomberg
Bitcoin is staging a comeback along with other riskier assets on Monday, bouncing back from its Black-Friday lows.
Bitcoin is staging a comeback along with other riskier assets on Monday, bouncing back from its Black-Friday lows.
The largest digital asset rose as much as 3.4 per cent during the session to trade around US$58,266. Other coins also posted snap-backs, with the Bloomberg Galaxy Crypto Index adding 5.5 per cent at one point. So-called alternative coins like Polkadot and Dogecoin gained too.
A brutal selloff Friday saw investors fleeing a number of riskier assets, including cryptocurrencies, with Bitcoin posting its worst day in roughly two months. The drubbing came after the announcement of a new coronavirus variant named omicron that was identified in southern Africa and which experts are now trying to understand. The session’s decline saw Bitcoin drop 20 per cent below a record high notched earlier in November, which for many strategists showcases the coin’s tendency to closely track moves of the broader stock market.
“It highlights that Bitcoin is a risk-on/risk-off asset,” said Matt Maley, chief market strategist for Miller Tabak + Co.
Meanwhile, in a development that is quintessentially cryptonian, a coin called Omicron crashed and then recovered as news of the eponymous variant spread. Though little is known about the coin thus far, data on CoinGecko.com shows it’s been in existence for a few weeks and that its market cap hovers around US$370 million.
