Bitcoin enters bear market territory as risk assets plunge on new Covid variant

Bitcoin fell sharply alongside other assets on Friday, hitting a seven-week low and officially entering bear market territory.

The world’s biggest cryptocurrency sank nearly 8% in the last 24 hours to $54,321, according to Coin Metrics data. The slide brought bitcoin to its lowest level since early October.

Bitcoin is down more than 20% from an all-time high of nearly $69,000 which it hit earlier this month. Bear markets are typically defined by a decline of 20% or more from recent highs.

Other cryptocurrencies also plunged Friday. Ether, the second-biggest crypto, fell more than 10% to $4,059, while XRP slumped 9.9% to just under 95 cents.

Digital currencies are falling in tandem with other risk assets amid panic over a new, heavily-mutated variant of the coronavirus first detected in South Africa.