- Bitcoin price declined on Sunday, continuing the sell-off period, with the cryptocurrency falling more than 17% on Friday night and Saturday.
- The cryptocurrency was trading near $48,000 on Sunday, close to Saturday’s low of $43,000. On Friday morning, bitcoin was around $57,000.
- The sell-off came as investors fled riskier sectors of the market amid fears of what the new Omicron version means for an economic recovery.
Bitcoin price fell by nearly 3% on Sunday morning, continuing a weekend of wild trading that saw the cryptocurrency drop by more than 17% in just 24 hours.
According to data from Coin Metrics, the cryptocurrency traded at $48,012 on Wall Street around 10:50 a.m. on Sunday.
Earlier in the day the cryptocurrency traded slightly higher at $49,000 as the cryptocurrency struggled to reclaim the $50,000 market, after falling as low as $43,000 on Saturday.
The price of bitcoin was $57,000 on Friday morning.
Bitcoin’s sharp drop follows Friday’s risk-off tone in the broader market. All three key averages ended Friday’s trading in the red and posted losses for the week amid fears over what the Omron Covid version means for the recovery.
As investors abandoned equities in favor of safer areas of the market, the yield on the 10-year US Treasury fell.
The Nasdaq Composite underperformed the Dow and the S&P 500 on Friday, with tech stocks taking a particularly hard hit. This sale extends to cryptocurrencies, which have no fundamental reason that led to a sharp decline in the crypto universe.
“It looks like someone was hit with a margin call yesterday and thus ‘forced’ to sell,” said Matt Malee, equity strategist at Miller Tabak. “The bitcoin market tends to be very “diluted” over the weekend, which may have accelerated the decline. Once the dust settled, the buyers came back and it stabilized.”
Nevertheless, the selloff over the past 48 hours is based on Bitcoin’s recent decline. The cryptocurrency officially entered bear market territory on November 26, then dropped to a seven-week low near $54,000.
Malee said that where bitcoin stabilized on Sunday — below the $50,000 level — is notable as it is below the trend line from its July lows.
“Whether it achieves that level next week or not (once regular trading activity resumes) should be important for bitcoin,” he said.
Bitcoin is now down 30% near its all-time high of $69,000, which it hit in early November.
“Bitcoin is in ‘no man’s land’ right now and it doesn’t appear to be changing anytime soon,” said Ed Moya, senior market analyst at Oanda. “The long-term bullish case remains intact, but the price is poised to consolidate between $52,000 and $60,000,” he said.
Ether also stabilized on Sunday, rising nearly 1.5% to $4,176. After a drop of more than 16% between Friday and Saturday morning, the cryptocurrency climbed closer to $3,500 on Saturday. Ether is the second largest cryptocurrency in the world by market cap.
— Businesshala’s Weizhen Tan and Tanaya Macheel contributed reporting.