The crypto market took a major blow after an extended weekend of trading, with many digital assets tumbling by double-digits. The value of the crypto market fell $410 billion in the last 24 hours, trading below $2 trillion.
$BTC.X dropped as low as $42,900 after reaching a high of more than $52,000 earlier in the day. The price action coincided with El Salvador adopting $BTC.X as legal tender — El Salvador’s wallet experienced technical difficulties within hours of its debut. Amidst the melodrama, El Salvadoran President Nayib Bukele tweeted that he is buying the dip. 💪 The company’s treasury added 150 bitcoins to their treasury. The country now has 550 total coins. 🤔
Bitcoin was led lower by the rest of the market, as $ETH.X tumbled 20% to $3,138 over the last 24 hours. Cardano’s $ADA.X token lost 23% and trades below $2.50. Similarly, $XRP.X plummeted 28% and $DOGE.X dropped 23% to $0.24. The steep decline came a day after JPMorgan analysts warned clients that the crypto markets are once again in a bubble. Analysts said the recent crypto boom reflects “froth and retail investor mania” instead of sustainable gains for the market.
On the bright side, three cryptos traded up today. One of them was $SOL.X, which hit a new all-time high of nearly $195 today. 🎉 FOMO has pushed the masses towards the high-powered “Ethereum Killer.” It was joined by $FTM.X (+31%) and $NEAR.X (+20%).
During the correction, major exchanges such as Coinbase, Kraken, and Gemini experienced delayed or canceled transactions.
In an interview with Bloomberg, Stephane Ouellette (chief executive and co-founder of FRNT Financial) said “Mystery selloffs, or selloffs where a legitimate reason is only found significant while later are much more common in crypto than in other asset classes.”
The crypto market ended in all red today. 💔 It’ll be interesting to see how long this correction lasts.