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Bitcoin lot it’s a hint in the Tuesday trading session though it picked up in the closing. Yet it plummeted 9% from the last closing. It posted staggering losses in a single day. El Salvador took the advantage and purchased more coins in the dip.
A staggering loss has been incurred in the cryptocurrency market in Tuesday trading session. In the trading session a wave of selling plummeted the prices of mostly every single coin. The market saw the uproar ahead of El Salvador’s first day of accepting bitcoin as legal tender.
According to crypto-data website CoinMarketCap, the value of the cryptocurrencies has gone down to a low of around $1.9 trillion in the trading session on Tuesday, nearly 15% less than 24 hours prior and reflecting a loss of more than $410 billion.
The prices of Bitcoin plummeted to 15% to less than $43,000. It is the lowest price in nearly three weeks. Some of the losses were made but settled at about $46,810 in the Tuesday closing session. Still it was low 9% from the earlier day.
Meanwhile, Ether, binance coin and Cardano ada also plunged between 13% and 18% per coin. Solana was the only coin which was posting a bullish move and increase in the value. The coin jumped at 8% after a stunning run up of nearly 36% over the past week.
El Salvador purchased more bitcoin
Amidst the middle of the crash in the crypto market, the President of El Salvador, Nayib Bukele has announced that the country has purchased additional 150 bitcoins, taking the advantage of the crashing prices of the coin. The holdings of the country have boosted to 550 total coins, worth about $25 million.
Early Tuesday, the sentiments are taking a hit, as El Salvador’s wallet experienced technical issues within hours of its debut. This has forced Bukele to announce it would temporarily go offline. Heightened trading volume also pumped up speculation about institutions selling off large stakes and even triggered brief outages. Hence, the trading was delayed on many of the world’s largest cryptocurrencies exchanges including coinbase, Kraken and Gemini.
NFTs Vs Crypto assets
The prices fell in less than a day as JP Morgan analyst warned its clients in a note about the recently rallying altcoins- an alternative to bitcoin and ether. The August rally in NFTs and pickup in decentralized finance activity has helped not only ethereum but also other alternative cryptocurrencies that facilitate or plan to facilitate smart contracts like Solana, binance coin, and Cardano.
Nikolaos Panigirtzoglou, Managing Director, JP Morgan said that the retail investors are making the cryptocurrency market look frothy again. In the last phase of retail investors, mania was between the beginning of January and mid-may. During the retail investor mania in Jan-May, the cryptocurrency market plummeted between 13% and 50% respectively.
El Salvador has created history recently by making bitcoin legal tender in the country. It will give the benefits to the people of El Salvador to pay taxes and other debt with the cryptocurrency, and allow hundreds of thousands of businesses nationwide to accept it as payment.
In Central America many Bitcoin ATMs have already been rolled out, powered by California based digital wallet first BitGo.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
