Oil prices hit 2-month low over new Covid-19 variant; cryptocurrencies tank

Oil prices dived around more than 10 per cent on Friday, hitting a two-month low as a new Covid-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Oil fell with global equities markets on fears the variant could dampen economic growth and fuel demand.

Brent crude fell $8.46, or 10.29 per cent, to $73.76 a barrel by 10 pm IST. WTI was down 11.52 per cent to 69.36 a barrel.

Bitcoin, too, tumbled over 9 per cent, dragging smaller tokens down, as investors dumped riskier assets for the perceived safety of bonds, the yen and the dollar.

Bitcoin, the largest digital currency, fell as much as 9.2 per cent to $53,551, its lowest since October 10. At 9 pm (IST), it was trading at $54,421, down over 7 per cent. 

The second largest cryptocurrency ether fell over 13 per cent to its lowest in a month as investors ditched cryptocurrencies.

Bitcoin, whose 13-year life has been peppered by bouts of extreme volatility, has slumped by more than a fifth since hitting a record high of almost $70,000 earlier this month.

“The spread of (the variant), especially to other countries, could wither investor appetite further," said Yuya Hasegawa at Tokyo-based exchange Bitbank.  

Gold prices, on the other hand, rose more than 1 per cent intraday, popping back above the pivotal $1,800 level as the discovery of a new coronavirus variant sent investors scurrying for safe havens. At 9 pm (IST), the yellow metal was trading at $1,798, up 0.58 per cent.  The US dollar index fell 0.5 per cent, helping gold's advance by making it a cheaper bet for overseas buyers, while US benchmark 10-year Treasury yields also weakened.