Bitcoin, the largest cryptocurrency by market value surged 3% on Sunday morning after a huge plunge on Saturday. The digital currency plummeted more than 17% in 24 hours, and lost over $10,000 of its value trading near $43,000 on Saturday.
Bitcoin traded at $48,012 around 10:50 A.M. Sunday on Wall Street, according to data from Coin Metrics. Earlier today, Bitcoin traded at $49,000 and the digital token seems to struggle to gain momentum and hit the $50,000 mark again.
Before the plunge, Bitcoin was trading around $57,000.
The price plummets followed a risk-off tone in the broader market on Friday. S&P 500, Dow Jones Industrial Average and Nasdaq Composite finished Friday’s trading in the red and caused losses following fears about the Omicron Covid variant. The appearance of the new Covid variant raised fears about the current economic recovery.
Omicron results in a bearish market
As the Omicron variant started emerging in several new countries at a fast pace, traders started ditching equities in favor of safer areas of the market. Meanwhile, the Nasdaq Composite underperformed the Dow and S&P 500. The technology stocks were the worst performers in the market.