Bitcoin Stabilizes At $ 49,000 After Friday’s Nightly Plunge

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The Bitcoin logo is displayed on the screen of a Bitcoin ATM on November 10, 2021 in Los Angeles, California.

Mario Tama | Getty Images

Bitcoin prices stabilized on Sunday morning after wild trading caused the cryptocurrency to drop more than 17% in just 24 hours.

The cryptocurrency was trading at $ 48,953 around 9:15 a.m. Sunday on Wall Street, according to data from Coin Metrics. The move towards the $ 50,000 mark comes after bitcoin fell to nearly $ 43,000 on Saturday, after trading around $ 57,000 on Friday.

Bitcoin’s sharp drop follows Friday’s risky tone in the broader market. All three major averages ended Friday’s trading in the red and posted losses for the week amid fears about what the omicron Covid variant means for the ongoing economic recovery.

Investors shifted away from stocks in favor of safer parts of the market as the 10-year US Treasury yield fell.

The Nasdaq Composite underperformed the Dow and the S&P 500 on Friday, with tech stocks hit hard. This sale has spread to cryptocurrencies, for no fundamental reason causing the sharp declines in the crypto world.

Still, sales over the past 48 hours build on recent declines in bitcoin. The cryptocurrency officially entered bear market territory on November 26, after falling to a seven-week low around $ 54,000.

Bitcoin is now almost 30% below its all-time high of nearly $ 69,000, which it reached in early November.

“Bitcoin is currently in ‘no man’s land’ and that doesn’t look like it will change anytime soon,” noted Ed Moya, senior market analyst at Oanda. “The long-term bullish case remains intact but prices appear poised to consolidate between $ 52,000 and $ 60,000,” he added.

Ether also stabilized on Sunday, rising about 1.5% to $ 4,176. On Saturday, the cryptocurrency hit a low of nearly $ 3,500, after plunging more than 16% between Friday and Saturday morning. Ether is the second largest cryptocurrency in the world in terms of market value.

– CNBC’s Weizhen Tan and Tanaya Macheel contributed reporting.

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