Financial markets around the world are quickly reacting to the news that a new coronavirus variant called Omicron, which has the potential to be vaccine-resistant, was detected in Hong Kong, South Africa, and Botswana.
Bitcoin fell over 8% early Friday morning hitting a low of $53,533, it’s lowest valuation since the beginning of October. Bitcoin is now down nearly 20% from its all-time high of nearly $69,000.
The crypto market as a whole was dragged down by the news as investors fled risky assets for the perceived safety havens of bonds and fiat currencies.
Scientists have said that Omicron variant has an advanced combination of over thirty mutations to the spike protein, the piece of the virus that actually binds to cells, and may be able to evade immune responses, ne more transmissible, and could be vaccine-resistant.
The World Health Organization (WHO) will meet later Friday at address the new variant and rise in infections as new fears of lockdowns spread throughout financial markets as the Stoxx 600 dropped 2.4% and the Dow Jones Industrail Average opened up down nearly 800 points.
If the variant continues to spread, especially to other countries, the world’s financial markets should brace for further turbulence.
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