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BTC Pulls Back 10% As El Salvador Adopts Bitcoin Law – And 'Buys the Dip'

BTC Pulls Back 10% As El Salvador Adopts Bitcoin Law – And 'Buys the Dip'

Bitcoin’s price sunk over 10% on early Tuesday along with the market wide crash, just as El Salvador announced that it would officially accept the major cryptocurrency as a legal tender. 

As per CoinMarketCap data, Bitcoin’s pull back accelerated as the crypto failed to hold its $50,000 price level — sliding from $51,000 to $44,700 within a single hour, hitting the bottom of $43,285 before recovering some to the current level of $47,118.

According to data from ByBt data, the rapid sell-off resulted in $1.44 billion in futures liquidations of Bitcoin trades in the past 24 hours.

Huobi-BTC witnessed the single largest reported liquidation — worth $43.7 million at the time. Tast majority of the liquidations were longs, representing about 88% of the total liquidations.

El Salvador Buying the Dip

Following the crash, El Salvador’s President Nayib Bukele tweeted that he is ‘buying the dip,’ purchasing another 150 BTC worth about $6.9 million, adding on top of the 400 BTC position. The average cost of the purchase appears to be around the $46,000 price range, if executed through regular exchange rates.

Does Bitcoin Need This To Trend Higher?

Read the full article at Fintechs.fi

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