The cryptocurrency market posted massive losses on Tuesday when a sell-off hit the costs of almost each and every coin, sparking the gains of retail mania ahead of the first day of acceptance of Bitcoin as legal tender in El Salvador.
The price of global cryptocurrencies plummeted to around $1. 9 trillion at 11:15 a. m. EDT on Tuesday, down nearly 15% from the previous 24 hours and reflecting a loss of more than $410 billion, according to crypto knowledge CoinMarketCap.
In the face of market cost losses, bitcoin’s value fell 15% to less than $43,000, the lowest value in about 3 weeks, before temporarily trimming some of the losses to around $46,810 at 11:50 a. m. EDT, still down 9% from a day earlier.
Meanwhile, Cardano’s ether, binance coin and ada fell between 13% and 18% each, while Solana was the only token to record a build-up in value, rising 8% after a very good accumulation of about 36% over the following week.
In the midst of the sudden crisis, Salvadoran President Nayib Bukele announced that the country had benefited from falling costs to buy 150 more bitcoins, bringing its holdings to 550 coins in total, about $25 million.
Sentiment began to take a hit early Tuesday when El Salvador’s portfolio struggled technically in the hours following its debut, forcing President Bukele to announce he would be temporarily offline.
The buildup in trading volume fueled the hypothesis about establishments promoting giant bets and even led to brief disruptions and trading delays on many of the world’s most giant cryptocurrency exchanges, adding Coinbase, Kraken and Gemini.
The sell-off came less than a day after JPMorgan analysts warned in a note to consumers that the recent rally in altcoins, or cryptocurrency options for bitcoin and ether, reflected “retail investor mania and foam,” rather than lasting gains for the “August rally in non-fungible tokens and the resumption of decentralized monetary activity have not helped. only to Ethereum, but also to choose cryptocurrencies that facilitate or plan to facilitate smart contracts, such as Solana, Binance Coin and Cardano,” jpmorgan CEO Nikolaos Panigirtzoglou said on Monday: “The past phase of retail investor mania in the cryptocurrency markets took a position between early January and mid-May. . . and retail investors are back once making cryptocurrency markets look bright. “After the mania for retail investments in January and May, cryptocurrency markets collapsed around 13% and 50%, respectively.
El Salvador made history on Tuesday by installing the first sovereign government to use bitcoin as legal tender, paving the way for citizens to pay taxes and other debts with the cryptocurrency, and allowing thousands of domestic businesses to accept it as a means of payment. In addition to its bitcoin buying frenzy, the Central American country has already marked the occasion with the deployment of piles of bitcoin ATMs and the launch of a new cryptocurrency wallet, Chivo, powered in component through the California-based bitGo virtual wallet. During the boisterous event, bitcoin bull billionaire Michael Saylor, CEO of business analytics firm MicroStrategy, rallied retail investors on Twitter and encouraged them to buy bitcoins worth $30 to showcase El Salvador’s historic feat.
“Bitcoin is less than a reaction” to buy before the big event, sell the fact “at the historic moment when El Salvador adopted the cryptocurrency,” Ed Moya, senior market analyst at Oanda, said in an email Tuesday, adding: “Bitcoin the basics intact, as costs establish a new trading diversity between the degrees of $46,000 and $53,000. »
El Salvador embarks on a $21 million cryptocurrency buying frenzy as Bitcoin becomes legalized (Forbes)
Solana leads Altcoin and Bitcoin rally as JPMorgan warns crypto markets are back (Forbes)
I am a senior journalist at Forbes, specializing in markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I earned a double major in business.
I am a senior journalist at Forbes, specializing in markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I earned a double major in business journalism and economics while applying to UNC’s Kenan-Flagler Business School as a marketing and communications assistant Before Forbes, I spent a summer reporting on the Los Angeles personal sector for the Los Angeles Business Journal and wrote about North Carolina publicly traded corporations for NC. Business News Wire. me on Twitter @Jon_Ponciano