Crypto Flash Crash Wipes Out $ 400 Billion In Bitcoin Day Market Value Before President Of El Salvador Bought Down

[ad_1]

Top line

The cryptocurrency market posted staggering losses on Tuesday as a wave of selling pushed the prices of almost every coin down, unwinding gains that had been taken into account by a retail mania before day one of trading. acceptance of bitcoin by El Salvador as legal tender.

Major cryptocurrencies like bitcoin, ether, and Cardano’s ada plunged to 15% in a matter of minutes.

Getty Images Highlights

The value of global cryptocurrencies plunged to a low of around $ 1.9 trillion at 11:15 a.m. EDT on Tuesday, nearly 15% lower than 24 hours earlier and reflecting a loss of more than $ 410 billion, according to the CoinMarketCap crypto data website.

Leading the market value losses, the price of bitcoin fell 10% to $ 44,672, the lowest price in nearly three weeks.

Meanwhile, Cardano’s Ether, Binance Coin, and Ada plunged between 13% and 18% each, while Solana was the only token to show an increase in value, climbing 8% after a stunning almost 36% increase over the past week.

Amid the lightning crash, Salvadoran President Nayib Bukele announced that the country had taken advantage of falling prices to purchase an additional 150 bitcoins, bringing its holdings to a total of 550 coins, worth around $ 25 million.

Prices quickly reduced some of the losses, with bitcoin settling at around $ 46,810 at 11:50 a.m. EDT, still 9% lower than a day earlier.

This is a developing story. Please check for updates.

Key context

The massive sell-off came less than a day after analysts at JPMorgan warned in a note to customers that the recent rallying of altcoins cryptocurrency alternatives to bitcoin and ether reflected “the craze of the foam and retail investors, “as opposed to lasting gains for the market. “The August rally in non-fungible tokens and the resumption of decentralized financial activity helped not only Ethereum but also alternative cryptocurrencies that facilitate or plan to facilitate smart contracts, such as Solana, Binance Coin and Cardano.” , said JPMorgan CEO Nikolaos Panigirtzoglou. On Monday. “The previous phase of the retail investor mania in the cryptocurrency markets took place between early January and mid-May … and retail investors are once again making the cryptocurrency markets look sparkling.” After the fad bouts of retail investing in January and May, the crypto markets collapsed by about 13% and 50%, respectively.

Further reading

El Salvador embarks on $ 21 million crypto buying spree as Bitcoin becomes legal (Forbes)

Solana leads massive Altcoin and Bitcoin rally as JPMorgan warns crypto markets are bubbly again (Forbes)

[ad_2]