A major reason for the Bitcoin plunge can be attributed to the prevailing regulatory opposition.
Bitcoin has suffered downtrends in the last 24 hours, with the price dropping down to $43,000. The price eventually recovered to $47,133, consequently causing a dip of more than 16%. Since May 15, Bitcoin has not seen such a significant one-day plunge, when the coin price fell to around $33,000. According to the analytics firm at Coinglass, the breakdown set off $2.41 Billion in liquidations around the world.
Following the world’s largest cryptocurrency, the price of ether and altcoins also dipped. Ether dropped to more than 10% at $3,500 before rising to $3,870. The currency, which presents itself as the new competition to market leader Bitcoin, has lost more than 14% in a day. Solana Blockchain’s SOL came down by 11.6%.
The decline in the crypto market was reverberating with the downfall in the US stock market too. The financial blog Zerohedge claimed that the recent December opening was the worst in the last 20 years of the US stock market. There was a dip in Tesla stocks by 7.8%, while China’s concept stocks plunged steeply soon after.
A major reason for the Bitcoin plunge can be attributed to the prevailing regulatory opposition. The United States authorities have summoned the Chief Executive Officers of some of the market-dominating crypto firms for a hearing on crypto-assets.
While the recent plunge has come as a shock to many, several analysts believe that the market has already hit the bottom and is all set to stabilize now. In a tweet some time ago, Chief Executive Officer of crypto educational platform Eight Global, Michael van de Poppe hinted at the lowest being reached by posting “bottom is in”.
Cryptocurrencies have witnessed a volatile and abrupt market ever since the detection of the new COVID variant. According to a report by World Health Organisation on Friday, the COVID omicron variant has been identified in more than 38 countries. While the world again fears a lockdown in many nations, the economic practices across the globe take a backseat. Last month on 26th December, Bitcoin touched a seven-week low of approximately around $54,000. Since its all-time high of $69,000 at the beginning of November, the market has plunged to 30% of its initial level.
As an immediate response to the Bitcoin market drop, the Republic of El Salvador acquired 150 Bitcoin (BTC). The Salvadoran president Nayib Bukele disclosed the purchase of 150 Bitcoins when the market price gradually came down from $54,000.
The government bought the coins at $48,670 per coin. However, it wasn’t able to purchase the currency at the lowest price of almost $42,000. President Bukele also acknowledged missing out on the lowest price by 7 minutes. The total number of Bitcoins owned by the Salvador government is 1,270 which is worth $60.3 million.