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Bitcoin cracks 10% as El Salvador officially adopts it as legal tender

Bitcoin cracks 10% as El Salvador officially adopts it as legal tender

On the evening of the 7th of September, prices of the biggest digital assets, Bitcoin (BTC) and Ether reportedly dropped by more than 10% and 15% within an hour. This flash crash occurred on the same day when the Central American country of El Salvador became the world's first nation to accept Bitcoin as legal currency.

According to reports, experts believe that bitcoin is still in a bull market as long as the price remains over $43,000.

Hitesh Malviya, founder of cryptocurrency and blockchain publication platform, stated that there is no bad news regarding this crack. At this time, mass liquidation appears to be the cause of the sharp drop.

As per CoinGecko, a digital currency information and pricing data portal, Bitcoin was trading 9.6% down at $46,229.71 at approximately 9.15 pm IST. After hitting a low of $45,299.59 within the session, the digital coin staged a small comeback.

The President of El Salvador, Nayib Bukele, tweeted that the country took advantage of the slump and purchased 150 bitcoins. The Central American country possessed nearly 400 bitcoins prior to its adoption of the BTC.

Bukele thanked the crash in another tweet and stated that now El Salvador has saved a million in printed paper and successfully reserved a total of 550 bitcoins.

The crypto market sell-off was not restricted to bitcoin. Ether was trading almost 13% lower at $3,463.62. Earlier in the day, the world's second-largest cryptocurrency was poised to climb beyond the $4,000 barrier.

According to reputable sources, following the crash, the entire market cap of the cryptocurrency market dropped by $400 billion to roughly $2.10 trillion. Other digital currencies, such as cardano, dogecoin, matic, and ripple were down by up to 20%.

Since it fell below $30,000 in July, bitcoin has been slowly rebounding. The digital asset had recently reached a four-month high of $52,853.45 ahead of El Salvador's adoption of it as its legal tender.

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.