Bitcoin plunges over 20% amid omicron volatility in markets
All cryptocurrencies, notably Bitcoin, plunged on Saturday as risk aversion sweeps across financial markets due to the spread of the new COVID-19 variant omicron, Daily Sabah reports.
The largest digital token fell as low as $42,296 before paring some of the tumbles. It was trading at about $47,600 as of 1:50 p.m. in Singapore (5:50 a.m. GMT) on Saturday, a drop of about 11%, Bloomberg reported.
Global equities and benchmark United States bond yields tumbled on Friday in a spout of volatile trading after data showed U.S. job growth slowed considerably in November while the omicron variant of the coronavirus kept investors on edge.
Recent global economic growth projections from the International Monetary Fund are likely be downgraded due to the emergence of the omicron variant, said IMF Managing Director Kristalina Georgieva.
Omicron has gained a foothold in many countries worldwide and many governments have restricted travel rules to curb the variant.
"The top issue is still this whole omicron variant. There are enormous amounts of uncertainty there," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.