Bitcoin’s crash creates a domino effect for other cryptocurrencies
On 14 September 2021. Bitcoin went bearish and fell. The fall was so graceful that Bitcoin could drag its opponents down with itself into the red, and it was a gusty blow to the cryptocurrency market.
According to the experts and the whales, around 400 billion USD worth gone missing as the crypto market came down crashing for more than 11 percent in a day. Many speculate that these coins were burnt.
Bitcoin is very volatile. It has fallen from 50,000+ USD directly to 43,000 USD, and now it is stable and below 50,000 USD. The cryptocurrency has gained and standing steady at the worth of 45,000+ USD now (14, September 2021).
Experts speculate that the drop was due to El Salvador becoming the first country to give legal status to Bitcoin. At first, due to the country’s move, the cryptocurrency market went to skyrocket. But this joy came to a halt as the government had to pause the rollout of the digital wallets because of a glitch, thus sending Bitcoin in a drop.
After this downfall, all the other cryptocurrencies tumbled down in a chain reaction. Cryptos like Ethereum, Cardano, and Binance had even a stepper drown than their competitor Bitcoin. All the three digital coins went on a toss between 13 percent and 18 percent last week.
At the time of writing, Ethereum is being traded between 3,200 USD and 3,300 USD. According to the market report, the coin is shallow from its all-time high of 4,196 USD in May. Traders can now buy 1 Cardano coin at 2.40~ USD, and the coin has fallen from its all-time high price of 2.6 USD, which it was at last month. Binance is also dangling at 400~ USD. It is shallow from its all-time high in May that was around 690 USD.
We summarize it in the sense that 400 billion USD worth of Bitcoin was wiped off the charts. This Tuesday, all the cryptocurrencies hit this year’s rock bottom, and the market cap was $1.9 trillion.
The country’s leaders are very positive despite the fall in the market. El Salvador still calls itself a crypto nation and owning to their positivity, and the leaders made the most out of the market crash. The President of El Salvador Nayib Bukele said over Twitter that the nation took advantage of the “dip” and bought 150 more Bitcoin. Mr. Bukele is now holding up to 550 Bitcoins. These coins hold a total worth of around 25 million USD.