Bitcoin Extends Downtrend, Falls 12.1% to $47,176

Bitcoin fell 12.14% to $47,176.09 on Saturday, down from its previous close of $6,567.6. 

Bitcoin, the world’s largest and best-known cryptocurrency, is down 31.6% from its November 10 high of $69,000.

In another sign of risk aversion in the financial markets, bitcoin fell along with other cryptocurrencies on Saturday.

The largest digital coin fell to $42,296 and then declined somewhat. By 1:50 pm it was trading around $47,600. Singapore lost nearly 11 per cent on Saturday.

Ether, the second largest coin, fell as much as 17.4% before losing a retrace of nearly 10%. According to tracker CoinGecko, the total crypto sector has lost almost a fifth of its value, falling to $2.2 trillion.

The volatility in cryptocurrency comes amid volatile periods for the financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to ease the liquidity tailwind that has lifted a wide range of assets.

The Omicron version of the coronavirus has raised risks over concerns about what this could mean for the global economic reopening.

Global stocks are down more than 4% from November’s record, while assets such as Treasuries have risen.

Leveraged Positions

According to Vijay Iyer, Asia Pacific head of crypto exchange Luno in Singapore, some leveraged buyers of bitcoin were turned off in Saturday’s crash. 

“Markets are also nervous about all the uncertainty surrounding Omicron, with cases now being reported in many countries,” he added. “It is difficult to say what this means for economies and markets and therefore there is uncertainty.”

According to data from Coingglass.com, nearly $2.4 billion of long and short crypto exposures were liquidated on Saturday, the highest level since September 7.

Bitcoin, known for its volatility, has lost nearly $21,000 since its record low on November 10.

But this year it is still more than 60%, a return that exceeds that of many other assets – and El Salvador President Nayib Bukele said the country has bought the dip again, adding 150 coins. The nation adopted bitcoin as legal tender this year.