Cryptos are falling as the total market falls below $ 2.5 trillion

Cryptocurrencies continued their weeks-long decline on Friday, with the value of the total market falling below $ 2.5 trillion as bitcoin officially fell into bear market territory.

By 7 a.m. ET, the total market value of all cryptocurrencies had dropped to $ 2.4 trillion, down nearly 9 percent over the past 24 hours.

Bitcoin – the largest cryptocurrency in the world – has tumbled nearly 8 percent since Thursday morning.

The digital currency was last traded at $ 53,580, a six-week low and a fall of more than 20 percent from its record high of around $ 69,000, which it hit earlier this month.

Other cryptocurrencies, large and small, also fell sharply Friday morning.

Ether, the original currency of the Ethereum blockchain, fell more than 10 percent over the last 24 hours, as did binance coin, the third largest crypto.

The figures on Friday reflected the week-long fall in currencies.
The figures on Friday reflected the week-long fall in currencies.

Sales of cryptocurrencies came as concerns over a new COVID-19 variant in South Africa scared investors and put pressure on global stock markets.

But many crypto enthusiasts have hailed bitcoin as something of a safe haven for investors, acting as a digital alternative to gold, which has long been a favorite among investors when nervous about the macro economy, as during the pandemic.

But as bitcoin and other cryptocurrencies toppled in the midst of uncertainty Friday, the value of gold rose as investors tried to protect their assets.

Exchange rates and logos for multiple cryptocurrencies.
Crypto’s battle as well as the fall in equities seen by many unprofitable technology companies suggest that investors are giving up more volatile positions.
Reuters

Separate factors, including a bill being drafted by lawmakers in India that will further regulate and potentially restrict cryptocurrency trading, also weigh on the prices of digital tokens.

Bitcoin and other cryptocurrencies have been steadily declining for a few weeks. And this week, as many profit-making technology companies highlight the potential for growth, their stocks fall, suggesting investors abandon volatile and risky assets for more documented investments that are more likely to resist an uncertain macro environment.

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