Bitcoin’s spectacular fall from grace has also drawn its rivals into the red zone, which is another blow to the cryptocurrency market.
Bitcoin’s spectacular fall out of favor has also drawn its rivals into the red zone, signifying yet another blow to the cryptocurrency.
Last week, an estimated $ 400 billion ($ 543 billion) disappeared from the crypto market after Bitcoin crashed more than 10 percent in a single day.
The volatile cryptocurrency fell from $ 50,257 ($ 68,211) to $ 43,351 ($ 58,838).
It has since stayed below the critical $ 50,000 ($ 68,000) mark.
At the time of writing, Bitcoin was up a bit, trading at $ 45,055.31 ($ 61,151.32).
The massive drop in prices came when El Salvador became the first country to adopt Bitcoin as legal tender.
Though the country’s radical move initially spurred the market, it soon dropped Bitcoin after the country paused digital wallets due to a glitch.
Like dominoes, other cryptocurrencies began to tumble.
Ethereum, Cardano and Binance saw even bigger declines than their Bitcoin counterparts.
The three digital coins fell between 13 and 18 percent last week.
At the time of writing, Etheruem was trading at $ 3,288.95 ($ 4,463.93), according to cryptocurrency aggregator CoinMarketCap, up from its all-time high of $ 4,196.63 ($ 5695.88) in May.
A single Cardano coin can now be purchased for $ 2.42 ($ 3.28), compared to the highest price ever of $ 2.58 ($ 3.50) late last month .
As for Binance, the coin is now worth $ 399.46 ($ 542.17) despite its all-time high in May of $ 690.90 ($ 937.72).
A total of $ 400 billion ($ 543 billion) was cleared from the charts, and the world’s cryptocurrencies hit this year’s low of $ 1.9 trillion ($ 2.58 trillion) on Tuesday, according to Forbes ).
However, despite El Salvador’s shaky start as a crypto nation, the head of state decided to make the most of the coin crashes.
The President of El Salvador, Nayib Bukele, announced that the country had used the “dip” by buying up another 150 bitcoins.
Mr. Bukele’s holdings have now grown to 550 coins – valued at approximately $ 25 million (A $ 34 million).
First country to make Bitcoin legal tender
In June, El Salvador became the first country in the world to vote to adopt Bitcoin as legal tender.
With 62 out of 84 possible votes, the politicians voted for a law to introduce Bitcoin for everyday use.
The bill allows the notoriously volatile digital currency to be used for many aspects of daily life, from property purchases to tax levies.
The law came into force last Tuesday, September 7th.
To encourage citizens to jump on the bandwagon, the El Salvador government even handed out $ 30 in free bitcoins to anyone who signed up for their national digital wallet called Chivo.
Foreigners who invest three bitcoins in the country – currently a whopping $ 150,000 ($ 200,000) – will receive residency permits, according to Fast Company.
Bitcoin investors can also avoid paying taxes, according to The Coin Telegraph.
However, not everyone is a fan of the move.
The International Monetary Fund (IMF) is concerned about the volatility of the coin and has warned that it could destabilize El Salvador’s economy.
Read related topics:Cryptocurrency
source https://www.bisayanews.com/2021/09/14/bitcoin-ethereum-cardano-binance-price-crash-as-crypto-plunges/
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