That's why bitcoin's value fell sharply this morning

Bitcoin tumbled nearly 8% on Friday after the discovery of a new, potentially vaccine-resistant variant of the coronavirus, leading investors to dump riskier assets for the perceived safety of bonds, the yen and the dollar, international news agency Reuters said.

Bitcoin fell as much as 7.8% to $54,377, its lowest since October 12, Reuters said. It was on track for its biggest one-day drop since Sept. 20, and has fallen by more than a fifth since hitting a record high of nearly $70,000 earlier this month. The sources said that the spread of the new variant of the Corona virus, especially in other countries, could further dampen investors’ appetite for cryptocurrency transactions.

Bitcoin reached an all-time high of $69,000 earlier this month as more major investors embraced the cryptocurrency, with many drawn to its purported inflation-resistant qualities. Others piled into the digital token on the promise of quick wins. However, the agency says it has remained highly volatile, raising questions about its suitability as a stable store of value.

Reuters added that smaller currencies, which tend to move in tandem with bitcoin, are also down. Ether, the second-largest company by market value, fell as much as 11.6 percent to its lowest level in a week. The last price was at $4,070, down nearly 18% from the November 10 high.