Bitcoin Loses $10,000 In Nervous Market

The bitcoin dropped sharply overnight, losing $10,000 in value in a nervous market before recouping some of its losses Saturday morning.

At one point late Friday, the often volatile cryptocurrency took a sudden sharp drop to $42,296, losing nearly 20 percent of its value.

But by 1600 GMT Saturday, the virtual currency moved up a little bit, trading at $48,210, down 10 percent from Friday.

“Digital assets got pushed around by the broader risk of conditions related to Omicron and expectations of a more aggressive Fed, but didn’t properly sell off until Friday, on contagion from equities,” said Martha Reyes, research director at the Bequant digital asset brokerage and exchange.

Reyes disclosed that the decline in the value of bitcoin, often prone to violent swings, was not entirely surprising. Since late November, she said in a note, it had been “stuck in a narrow range” while some investors wanted to unwind their positions.