Bitcoin and other cryptocurrencies are rebounding after experiencing a sharp sell-off at the end of last week.
The price of Bitcoin rose 6% in the last 24 hours to $57,373 U.S., according to Coin Metrics. Other digital assets also rose, with Ethereum increasing 7% to $4,331 U.S. and XRP up 6% at $0.98 U.S.
Bitcoin last week had fallen as low as $53,549 U.S., its lowest level since early October, amid a broader sell-off in stocks and other assets on fears over the new coronavirus variant called “Omicron.”
The world’s largest digital currency was briefly down more than 20% from its recent all-time high of $69,000 U.S., officially entering bear market territory. Bear markets are defined by a decline of 20% of more from recent highs.
The new Covid-19 variant, first identified in South Africa, has spread to multiple countries, including Canada. However, initial indications are that the heavily mutated variant of Covid-19 produces milder symptoms in people who are infected.
Canada, the U.S., U.K. and other nations have restricted travel with some African countries in response. Britain has also introduced new measures to tackle the new virus mutation, including mandatory mask wearing in shops and on public transportation.
On Sunday, Dr. Angelique Coetzee, the South African doctor who first detected the Omicron variant, described its symptoms as “extremely mild,” soothing fears of a potential return to lockdown restrictions during the holidays.
In addition to cryptocurrencies, oil prices and stocks are also rising in premarket trading today, with the Dow Jones Industrial Average up more than 200 points (0.63%), the S&P 500 index up 0.85% and the Nasdaq index up more than 1%.
