The price of the world’s largest digital asset, bitcoin (BTC), fell more than 10% in under an hour on Tuesday evening, while ether fell more than 15%. This flash crash happened on the day when El Salvador Became the first country in the world to adopt BTC as a legal tender.
according to experts, Bitcoin As long as the price remained above the $43,000 level, it was in a bull run.
“Basically, there is no negative news regarding this decline. Presumably, the massive liquidation at this point looks like the reason for the decline,” said Hitesh Malviya, Founder, itsblockchain.com, a blockchain and cryptocurrency publishing platform.
According to digital currency price and information data platform CoinGecko, bitcoin was trading down 9.6% to $46,229.71 at around 9.15 am IST. The digital coin staged a minor recovery after hitting a low of $45,299.59 during the session.
El Salvador used the crash as an opportunity and bought 150 bitcoins. Before the adoption of BTC, there were 400 bitcoins in the Central American country. “Buying dips. 150 new coins added,” tweeted El Salvador President Nayib Bukele.
“Looks like the discount is coming to an end. Thanks for the dip @IMFNews. We saved a million on printed paper. El Salvador now has 550 bitcoins,” read another tweet.
The selloff in the crypto market was not limited to bitcoin. Ether was trading down nearly 13% at $3,463.62. Earlier in the day, the world’s second largest cryptocurrency was on the verge of breaking above the $4,000 level.
Other digital assets such as Dogecoin, Cardano, Ripple and Matic were trading in the red by up to 20%.
The overall crypto currency had been improving steadily since bitcoin hit a low of under $30,000 in July. Recently, the digital asset reached a four-month high of $52,853.45, before El Salvador adopted digital assets as legal tender.
According to The Wall Street Journal, the government is building a network of 200 bitcoin ATMs and staff with a series of stylish, Chivo-brand kiosks that will introduce consumers to bitcoin in plazas across the country.
The total market cap of the cryptocurrency market fell by nearly $400 billion to below $2.10 trillion after the crash.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.