The crypto market was dwindling and shaking up like a leaf for the past few weeks as the price action has been pretty compromising across the board. Bitcoin being the flagship cryptocurrency, suffered the heaviest losses and endless slaying of prices, but it was not alone in this regard. Ether has also plummeted below $4K and then resurfaced back, as did Bitcoin and many other cryptocurrencies. This show continued for a while, and it was presumed that the worst of corrections was now over, and the market had stabilized itself. But that didn’t become the case; as the news of a new COVID-19 variant struck the financial markets, there was nothing but chaos and frenzy.
Stocks, commodities as well as cryptocurrencies were falling like the domino tiles, and it was presumed that a financial crisis was in effect across all these markets. But later on, World Health Organization released a report explaining how this new variant is not lethal but only mild, this led to a sudden rebound happening in all of these financial markets, and things were getting back to normal, come the biggest market correction to ever hit since May.
China issued a crackdown against Bitcoin mining and trading back in May, and that was the time when Bitcoin plummeted all the way down to $30K and had a very challenging time trying to sustain its value and rebound. This new correction has sent Bitcoin below $50K and even below, while for Ether, its price is already down $4K and plummeting still. The same is true for every crypto market entity out there, be it may crypto currencies, non-fungible tokens, or exchange-traded funds. El Salvador, on the other hand, has cashed out this opportunity in the form of buying new tokens and taking its total count to 1270 Bitcoin tokens worth $60.3 million.
The El Salvador government is playing a very neat game with Bitcoin, or so they think; like many financial entities such as MicroStrategy, the country is buying every possible dip and is hoping that it would repay double or even triple the original amount should Bitcoin stabilize in the future. Whether the crypto would do so or not is a mystery.
