Red Saturday in the cryptocurrency space had top digital coins dropping their price by double digits while the market capitalization suffered a 20% loss. Bitcoin plummeted to touch a two-month low near $42,600. Also, Bitcoin has its market cap falling by more than one trillion. Ethereum, on the other hand, touched its 1-month low, breaching its crucial support at $4,000.
The crypto market flash crash on 4 December might have scared many in the space, but El Salvador takes it as a lucrative opportunity to add its $BTC holdings. Nayib Bukele announced the dip-buying via a Twitter post, confirming that the Central American country has bought 150 more Bitcoin during the latest crash, acquiring the tokens with $48,670 as an average cost.
El Salvador has yet again confirmed its dip-buying tradition since becoming the first nation to recognize Bitcoin as legal tender back in September. The president has purchased multiple Bitcoin dips and has hit the crypto market bottom in most cases. However, he missed this time’s bottom by seven minutes as Bitcoin saw an extended fall towards $42,600 before rising to $47,000.
El Salvador purchased its first Bitcoin dip in September when $BTC plunged to hover below the $40,000 level. Many financial experts warned Nayib Bukele about crypto volatility and the possible losses. Nevertheless, the president nailed the crypto bottom and almost doubled the return during October sessions when Bitcoin touched an ATH near $69,000. El Salvador utilizes Bitcoin profits to build hospitals and schools.
Crypto Market Suffers Massive Liquidation
The recent flash crash in the crypto industry led to the highest liquidation in the market since 2020 September. Liquidations worth almost $1 billion happened in the past few hours, with BTC leading with about $650 million liquidations. Ether followed with its $292 million worth of loss.
The market crash shocks many. Keep in mind that pundits predicted bullishness in 2021’s final quarter. Analysts like Plan B saw Bitcoin hitting $100,000 before the year’s end. October encouraged market players as BTC plus other tokens touched their ATH. However, December opened with a bearish note, shifting market sentiment to ‘fear’ from ‘greed.’
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