Friday's sell-offs could be the beginning of a new wave of uncertainty gripping the markets.
Bitcoin plunged on Friday, along with the stock market, following the discovery of a new coronavirus variant in South Africa.
There are fears that the strain is more transmissible, and that it could offer greater levels of resistance to COVID-19 vaccines.
With the U.K. moving quickly to restrict flights from six African countries, equities tumbled sharply amid fears of fresh disruption to international travel… and the prospect of further lockdown restrictions.
A number of analysts have admitted that BTC's pullback took them by surprise — and it's a classic example of an unexpected news event sending shockwaves through the crypto market. To make matters worse, Bitcoin had already been showing signs of weakness.
Some influencers have drawn parallels to the crash seen in March 2020 when a number of countries went into lockdown for the first time.
But given how it will take many weeks to establish how serious this new strain is, and whether it can be contained, Friday's sell-offs could be the beginning of a new wave of uncertainty gripping the markets.
And this, when combined with the other headwinds facing BTC right now, could derail hopes of new all-time highs and a surge to six-figure territory in the first quarter of 2022.