The price of flagship cryptocurrency has dropped below $45,000. The cryptocurrency’s recent volatility started off after the issues faced by El Salvador in relation to their launch of Bitcoin as a legal tender. Bitcoin which was trading above $52,000 fell below the $50,000 mark and has remained in the bracket of $40,000 and $50,000.
The most recent dip comes on the heels of Evergrande Group’s collapse which has begun to affect equity markets. On Monday, shares in Evergrande, which has been struggling to secure funds to pay its many lenders, suppliers, and investors, closed down 10.2 percent at HK$2.28 on Monday, after earlier diving 19 percent to its lowest level since May 2010. This collapse of the real estate company influenced the latest round of selling in the crypto market. According to reports, more than 180,000 traders had suffered liquidity for the day.
On the Evergrande collapse, Elon Musk suffered losses of up to $7 billion as Tesla shares, which are one of the world’s most valuable, suffered a pullback. Experts and analysts are, however, positive about a market pullback soon.
The recent dip is not as aggressive as what was obtainable earlier this month but experts warn that traders and investors could be in for some serious volatility as a result of Evergrande Group’s collapse.
For some, the dip is an opportunity to acquire more Bitcoin. El Salvador which recently adopted Bitcoin as a legal tender, recently acquired 150 more Bitcoins, raising its total Bitcoin holdings to 700. According to Nayib Bukele, the country’s President, “they can never beat you if you buy the dips”. The President who seems to be on a mission of acquiring as many Bitcoin as possible shared the announcement via his Twitter page. “We just bought the dip. 150 new coins! El Salvador now holds 700 coins”, the tweet read.
Bitcoin is currently trading at $42,175.70.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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