Today, 26 November 2021, is Black Friday and many are joking that the crypto market is also at a discount, with cryptocurrency prices down.
However, today’s price drop has nothing to do with Black Friday.
Forget Black Friday: crypto market figures in red
For example, AJ Bell‘s chief investment officer Russ Mould jokingly stated:
“Forget Black Friday; today has been renamed Red Friday”.
Mould was actually referring not only to crypto markets, but to all financial markets, which are now heavily in the red.
For example, the S&P 500 opened with -1.5% and the Dow Jones with -2.3%.
Bitcoin today fell as low as $53,500, a loss of 9.7% from yesterday’s $59,300.
Today’s across-the-board drop, which is significant but not particularly problematic, comes after almost a month of uninterrupted growth, followed by a couple of weeks of lateralization, and is likely due to concerns about a new vaccine-resistant variant of Sars-Cov-2.
In other words, financial markets are now worried that if the new variant spreads, lockdowns of the kind we saw earlier this year will occur again, and with the Fed having already announced a slowdown in its monetary stimulus programme, the fear is that stock market values could start to fall.
All this coincidentally takes place on the traditional Friday of discounts following the Thanksgiving holiday, which was held yesterday in the US with the markets closed.
Losses on the crypto market
In addition to the stock and bond markets, the prices of all major cryptocurrencies are also falling today.
Worse than Bitcoin in the last 24 hours are Ethereum, Cardano, XRP, Polkadot, Dogecoin, and Crypto.com, while the losses of Binance Coin and Solana are in line with those of Bitcoin. Shiba Inu and Terra lost slightly less.
Avalanche has lost a lot, though it has grown strongly in recent days.
Overall, the total crypto market capitalization lost just over 6%, which is in line with BTC’s loss.
Volatility that doesn’t worry
The fact that these losses are significantly higher in percentage terms than those of the financial markets should not come as a surprise, as it is well known that the volatility of cryptocurrencies is greater than that of traditional assets, both up and down.
According to several analysts, today’s drop could be absorbed in the coming days, even though the financial markets will be closed tomorrow and the day after for the weekend.
It is worth noting that at first only gold appreciated today, but as the hours passed, its price then returned to yesterday’s levels.
The Dollar Index fell 0.5% from yesterday’s close, but did not rebound afterwards.