El Salvador Purchases 410 Bitcoins for $15 Million As Markets Tumble
El Salvador purchased 410 more Bitcoin (BTC) on Friday, January 21, as markets fell. The country already has over 1,5000 BTC and is continuing to add to its holdings. El Salvador’s President, Nayib Bukele, announced the news on Twitter.
410 Bitcoins Purchased by El Salvador
The country El Salvador continues to acquire Bitcoin as the value of cryptocurrencies and regular markets fall. The transaction cost “just 15 million dollars,” allowing the country to hold 1500 BTC.
Not to mention that El Salvador was the first country in the world to recognize Bitcoin as legal money alongside the US dollar.
This Bitcoin transaction occurred precisely as the market dipped below $37,000 for the first time since August 2021. As a result, even as the market collapses, the country continues to accumulate Bitcoin.
“Nope, I was wrong, didn’t miss it,” “El Salvador just bought 410 Bitcoin for only 15 million dollars. Some guys are selling really cheap.”– President Bukele
Bitcoin has dropped by 17 percent in the last seven days, according to Coingecko data. That means the virtual currency is now worth around $35,700 and has a market capitalization of $670 billion.
Other cryptocurrencies are following in Bitcoin’s footsteps. Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Luna (TERRA), Polkadot (DOT), and Dogecoin (DOGE) are a few examples.
Polkadot was the biggest loser among the top 10, plunging by more than 36% in the last 7 days alone. This was followed by Solana (which fell by 30% within the same time period) and Luna, which fell by more than 29%.
In the last seven days, there have been no gainers among the top 100. Stablecoins have only recently been able to maintain their value. This indicates that investors are selling their coins in favor of stablecoins.
TIME was the biggest loser among the top 100 over the last week, plummeting by 60%, LRC by 49%, and POKT by more than 48%.
In comparison to altcoins, Bitcoin has performed relatively well. Some investors appear to be shifting away from altcoins and toward Bitcoin. This is something we have witnessed over the years.
Altcoins typically follow suit when Bitcoin rises in value, expanding even more. When Bitcoin falls, altcoins usually follow suit by dropping even further.
Also Read: Cryptocurrency’s growth is unstoppable and PrivacySwap is here to foster it.
Crypto market cap plummets to 5-month low as over $350 billion wiped in a day
Bitcoin (BTC) and other cryptocurrencies have lost hundreds of billions of dollars in value as the crypto market continues to deteriorate.
On Saturday, January 22, the worldwide crypto market cap is $1.62 trillion, a 12.02 percent fall from the previous day. As a result, the crypto market cap lost $356 billion in a single day as its price fell from $1.98 trillion to $1.62 trillion.
During the preceding 24 hours, the total volume of the cryptocurrency market reached $131.90 billion, marking a 26.92 percent increase.
DeFi accounts for $19.36 billion, or 14.68 percent, of the overall crypto market’s 24-hour volume, whereas stable currencies now account for $107.34 billion, or 81.38 percent of the crypto market’s 24-hour volume. Notably, the market cap was last this low on August 8, 2021.
Is cryptocurrency about to enter the stock market?
Given that the cryptocurrency market is currently pessimistic as it continues to contract, several analysts, including Andersen Capital Management’s chief information officer Peter Andersen, believe that “crypto is headed for a catastrophic correction.”
Similarly, Gareth Soloway, chief market strategist at InTheMoneyStocks.com, has stated that while Bitcoin’s volatility may force it to fall below $20,000, the cryptocurrency’s long-term prospects remain bright.
As a result, former hedge fund manager and Mad Money broadcaster Jim Cramer believes that money exiting the cryptocurrency market would flow into stocks; he tweeted:
“I think there will be a wave of money coming from crypto into stocks.”– Jim Cramer
The majority of the money has departed the market, with the flagship digital asset currently down 8.99 percent in the last day and 17.40 percent in value over the preceding seven days. This follows what had already been the worst start to a year in Bitcoin history. It was valued at more than $68,000 in November, but it is worth less than $36,000.
Bitcoin’s price had already declined significantly on Thursday night and into Friday, falling from over $43,000 to around $38,500. However, the slide continued early Saturday morning, taking the stock to a low of $35,140, though it is presently trading at $35,567, according to CoinMarketCap data.
Any Bitcoin investors who bought cryptocurrencies at the start of the year have seen their investment lose more than 23% of its value in only three weeks.
Other cryptocurrencies have witnessed even larger drops; for example, Ethereum is currently down by 26.7 percent in the last week; similarly, Binance Coin (BNB) and Cardano (ADA) are both down by 28.8 percent in the previous seven days for the former and 19.7 percent for the latter.
Also Read: Cryptocurrency mass adoption starts as more countries embrace this medium of exchange