Bitcoin, ethereum, cardano, binance prices fall as crypto plunges

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The dramatic fall in bitcoin has also dragged its rivals into the red zone in yet another blow to the cryptocurrency market.

Bitcoin’s dramatic fall has also dragged its rivals into the red zone in yet another hit to the cryptocurrency.

Last week, around 400 billion US dollars (AU $ 543 billion) disappeared from the crypto market after bitcoin crashed by more than 10% in a single day.

The volatile cryptocurrency has grown from US $ 50,257 (A $ 68,211) to US $ 43,351 (A $ 58,838).

It has since remained below the critical mark of US $ 50,000 (A $ 68,000).

As of this writing, bitcoin has gained a bit, trading at US $ 45,055.31 (A $ 61,151.32).

The massive price drop came as El Salvador became the first country to introduce bitcoin as legal tender.

While the country’s sweeping move initially bolstered the market, it quickly caused bitcoin to drop after the country had to suspend digital wallets due to an issue.

Like dominoes, other cryptocurrencies began to crumble.

Ethereum, cardano and binance recorded even bigger drops than their bitcoin counterparts.

All three digital coins plunged between 13% and 18% last week.

At the time of writing, etheruem was trading at US $ 3,288.95 (A $ 4,463.93), down from its all-time high of US $ 4,196.63 (A $ 5,695.88) in May, according to cryptocurrency aggregator CoinMarketCap.

A single Cardano coin can now be purchased for US $ 2.42 (A $ 3.28) down from its highest ever price of US $ 2.58 (A $ 3.50) at the end of the last month.

As for the binance, the coin is now worth US $ 399.46 (A $ 542.17) despite its all-time high in May of $ 690.90 (A $ 937.72).

In total, $ 400 billion (AU $ 543 billion) was wiped off the charts, and global cryptocurrencies hit this year’s low with a market cap of $ 1.9 trillion ($ 2.58 billion). Australian dollars) on Tuesday, according to Forbes.

However, despite the shaky start of El Salvador’s candidacy as a crypto nation, the country’s leader has decided to make the most of the coin crashes.

Salvadoran President Nayib Bukele announced that the country had taken advantage of the “drop” by purchasing an additional 150 bitcoins.

Mr Bukele’s holdings have now grown to 550 coins – with a total value of around $ 25 million (AU $ 34 million).

First country to make bitcoin legal tender

In June, El Salvador voted to become the first country in the world to adopt bitcoin as legal tender.

With 62 out of 84 possible votes, politicians voted in favor of creating a law to adopt bitcoin for everyday use.

The bill allows the famous volatile digital currency to be used for many aspects of daily life, from real estate purchases to tax contributions.

The law came into effect last Tuesday, September 7.

To encourage citizens to jump on the bandwagon, the Salvadoran government even handed out $ 30 in free bitcoin to anyone who signed up for its national digital wallet, known as Chivo.

Foreigners who invest three bitcoins in the country – currently US $ 150,000 (A $ 200,000) – will be granted residency, according to Fast Company.

Bitcoin investors can also avoid paying taxes, according to The Coin Telegraph.

However, not everyone is a fan of the movement.

The International Monetary Fund (IMF) is concerned about the coin’s volatility and has warned that it could destabilize the Salvadoran economy.

Read related subjects: Cryptocurrency

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