The crypto market continues to dry up with massive double-digit losses evident from the price of Bitcoin and most altcoins. At the time of writing, BTC is changing hands at $35,120.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price drops to $34,000 as Bitcoin RSI hits most ‘oversold’ since March 2020 crash
The bears continue to take complete control of the crypto market with multiple double-digit losses from most assets. As reported yesterday, BTC started a rapid sell-off in value and dropped to a six-month low of $38,250. This increased volatility resulted in over $700 million worth of liquidations in just one day.
As BTC managed to recover and hit $39,000, the bulls suffered another major blow. BTC dumped nearly $4,000 again and hit its lowest price since late July at $35,000. Since the asset is currently just a few hundred dollars higher than that, its market capitalization drops below $700 billion.
Bitcoin’s slide coincided with the recent correction in the stock market. Meanwhile, El Salvador president Nayib Bukele did not miss out on buying cheaper BTC. And the latest halving has resulted in the country accumulating an extra 410 BTC.
Last year, the country made history by becoming the first country to adopt the main cryptocurrency as legal tender within its borders. Since then, it has started many pro-Bitcoin initiatives and regularly buys more assets.
Although their total investment was worth less than $10 million in early January, the Bukele president said he is concerned that the country cannot buy more BTC during the recent market downturn. This happened when BTC dropped to $40,000 but rose immediately to around $44,000. However, the cryptocurrency has been down for the past few days, losing almost $9,000 in two days.
No, I was wrong, don’t miss it.
El Salvador just bought 410 yen #bitcoin for only 15 million dollars
You guys are selling really cheap 🤷🏻♂️ https://t.co/vEUEzp5UdU
– Nayib Bukele (@nayibbukele) January 21, 2022
However, the country’s total BTC investment remains very low, as estimates suggest that El Salvador has dropped around $20 million to date.
Altcoins are even worse over the past two days. The cumulative market capitalization of all crypto assets has dropped to just over $1.597 trillion. This means the index is down $200 billion in one day and $400 billion in two days.
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