Key Takeaways
- Bitcoin and other cryptocurrencies crumble under the selling pressure on Monday
- A broad-based selloff roils the financial markets as the selling wave spills over crypto assets
Cryptos Decline by Double-Digits on Monday
Cryptocurrencies slid broadly on Monday amid fears of a global market meltdown. Prices of major crypto assets plummeted by double-digits with bitcoin closing Monday down about 9%. The leading crypto token finished trading yesterday at $43,500 per coin, having opened the day at $47,500.
The sharp decline in the crypto space reflected a selloff in the global financial markets. Heavy pressure pushed stocks around the world lower as China’s property giant Evergrande is facing bankruptcy over its debt amounting to more than $300bn.
Bitcoin dipped to a 1.5-month low on Monday, reaching a price of $42,500, or an intraday decline of 13%. The sharp selloff arrived after a quiet weekend trading for crypto assets.
Along with bitcoin’s dip, alternative coins were not spared from taking a beating. Ether, the second-biggest cryptocurrency, slipped more than 13% to a session low of $2,900. However, the Ethereum blockchain’s native coin managed to pare some losses and finished the day lower by roughly 10%, at $3,000 per coin.
Among other coins, XRP lost about 14%, while Dogecoin erased almost 12%. Litecoin dropped 10%, and Bitcoin Cash declined about 11%.
El Salvador Buys the Dip in Bitcoin’s Price
Amid the sea of red, the country which adopted bitcoin as legal tender two weeks ago, El Salvador, took the opportunity to buy the dip. Nayib Bukele, the president of El Salvador, announced via Twitter he had added 150 more bitcoins to the already-existing stack of 550 coins.
“We just bought the dip,” said Mr. Bukele. “150 new coins! El Salvador now holds 700 coins,” he added. In continuation of his purchase reveal, he said that “they can never beat you if you buy the dips”. Furthermore, he added this could be taken as a “presidential advice.”
On Tuesday, the price of bitcoin is little changed. The orange coin is trading near $43,000, lower by about 1.5% on the day. Ether hovers near its opening level of $3,000 per token.
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