A bitcoin flash crash on Monday morning has sent major cryptocurrencies tumbling, wiping more than $200 billion out of the crypto market.
Bitcoin fell below $44,000 after falling more than 8% in a matter of hours, although even these losses were modest compared to its rivals.
Ethereum (Ether) fell more than 10 percent, while Cardano (ADA), Solana (SOL) and Dogecoin all lost more than 13 percent.
Salvadoran President Nayib Bukele tweeted that he used the market crash as an opportunity to “buy the decline” and add to El Salvador’s reserves, although some analysts warned that the latest price drop could be part of a longer-term trend. Is.
Other experts are still confident that any short-term volatility will eventually be forgotten as bitcoin hits a new all-time high in 2021.
You can follow all the latest news, updates and expert price predictions in our live blog.
El Salvador ‘buys dip’ during bitcoin price crash
A drop in the price of bitcoin usually signals one of two extreme reactions from traders and investors.
The first is panic selling, which is usually the reaction of short-term holders and newcomers to the market. This forces the price to drop even further and creates more fear among other so-called ‘paper hands’ who also sell.
The second reaction is to use the price drop as an opportunity to acquire more bitcoin at a cheaper price. These so-called ‘diamond hands’ are often long-term holders who are familiar with its wild ups and downs, but are optimistic about its long-term trajectory.
Despite recently buying bitcoin for the first time, the president of El Salvador has proven himself to be in the latter camp. Nayb Bukele revealed that he has “bought the dip” with an investment of $6.7 million in the cryptocurrency.
You can read the full story here.
Bitcoin price flash crash prompts El Salvador president to ‘buy the dip’
Nayb Bukele tweeted, ‘If you buy dips they can never beat you. ‘President’s advice’
Dogecoin founder rides out price crash in distinctive fashion
Dogecoin founder Billy Marcus has responded to a market-wide price crash by sharing a GIF of a “It’s OK” dog.
The meme-inspired cryptocurrency has seen some of the heaviest losses on Monday, falling nearly 15 percent and showing no signs of slowing down.
After trading above $0.25 over the weekend, Dogecoin is now threatening to drop below $0.20 for the first time since May. Despite these losses, the cryptocurrency is still up nearly 10,000 percent from this time last year.
This isn’t much of a consolation for Marcus, who sold off his original holdings years ago and only bought back earlier this year (though even when Dogecoin was below $0.20).
Bitcoin Price Flash Crash Indicates a Downfall in the Crypto Market
Bitcoin suffered a series of mini flash crashes on Monday morning, bringing the price below $45,000.
After trading close to $49,000 over the weekend, the cryptocurrency is now back at the level it was in just a week ago.
The drop in prices at the start of the week has prompted the market decline with other major cryptos falling 5-15 per cent.
Among the top 10 major cryptocurrencies, Solana (SOL) has been the hardest hit. The altcoin has lost more than 13 percent in the past 24 hours, reducing its market cap to $41 billion – $15 billion, down from its peak earlier this month.
Credit: www.independent.co.uk /