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Bitcoin climbs again above $ 57,000 as cryptocurrencies bounce again from the sell-off

The value of Bitcoin (BTC) exceeded $ 66,895 for the first time in its history.

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Bitcoin and other cryptocurrencies rose on Monday after a heavy sell-off late last week.

Bitcoin's price has soared nearly 6% to $ 57,373 in the past 24 hours, according to Coin Metrics data. Other digital assets also rose, with Ether climbing 7% to $ 4,331 and XRP climbing 6% to about 98 cents.

Vijay Ayyar, head of Asia Pacific at the Luno cryptocurrency exchange, said early reports that the new, heavily mutated Omicron-Covid variant with milder symptoms boosted the market.

"We're seeing news that the variant is potentially weaker in terms of symptoms in the early analysis, which helped the market comeback," Ayyar said via email. "That's probably why smart investors bought this dip."

Bitcoin fell to $ 53,549 last week, its lowest level since early October, amid a wider sell-off of stocks and other riskier assets amid fears over the new variant of coronavirus.

The world's largest digital currency has temporarily fallen more than 20% from its recent all-time high of nearly $ 69,000 and officially entered bear market territory. Bear markets are typically defined by a 20% decline from recent highs.

The new variant of Covid, which was first identified in South Africa, has spread to several countries, including the UK, Germany and Italy.

The US, UK and other nations have restricted travel with some African countries in response. The UK has also put in place new measures to combat the new mutation of the virus, including wearing masks in shops and on public transport in England.

On Sunday, Dr. Angelique Coetzee, the South African doctor who first discovered the Omicron variant, described her symptoms as "extremely mild" and allayed fears of a possible return of lockdown restrictions during the holidays.

"The global environment has increased uncertainty in all risk asset classes, as we saw last week, but the recovery always shows us how strong the uptrend is in what we are seeing here," said Ayyar.

If Bitcoin were to lose between $ 48,000 and $ 50,000 on a daily or weekly basis, "that would definitely mean a downtrend," he added. But right now Ayyar is saying, "We are still in bull market territory."

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