From celebration to correction – While September 7 was shaping up to be festive with Bitcoin becoming the official currency of El Salvador,
the crypto market has been experiencing a brutal correction in the last few hours, going from the perky, optimistic green of the last few days to the bright red of an artery that’s suddenly emptying in a big way. The time will soon come to question the “astonishing” correlation between the events, for now let’s confine ourselves to a formal statement on the extent of the damage.
Another day in the wonderful (but chaotic) world of Bitcoin and cryptocurrencies
If you’re an old hand at the industry, the last few hours will leave you with a taste of déjà vu, as the episodic 10 or 20% purges of Bitcoin
price are as much a part of its identity as its fabulous growth over the last decade
And as a veteran, you also know that as unpleasant as the gale may be (let’s be honest, you never quite get used to it), it will offer the smartest person the opportunity to pick up what the most fragile have let fall from their trembling hands, the famous “Buy the dip”.
And if you’re one of the newcomers, it’s time to learn how to take a deep breath (yes, the same as when preparing for childbirth), as this baptism of fire can be very trying, especially if you’ve come back in the last few days, either on the advice of a friend (who strangely doesn’t take your calls anymore tonight), or pushed by the appearance of an easy gain on a crypto market reputed to make millionaires. Rejoice: you’ve just realized that it’s not true (or at least a little more complicated than that), and this learning will ultimately
be more valuable than you can currently imagine.
But for the time being, this talk full of positivism will have little impact (which is also perfectly normal), so let’s focus on the objective and analyzable facts
A 100 billion crypto correction
Factually, the Bitcoin and crypto market has lost 100 billion dollars in the last few hours and suffered a drop of more than 10% in 24 hours
Bitcoin thus falls from a price of $52,000 to less than $47,000, Ethereum, which was close to $4,000 this morning, is taking a beating at less than $3,500. And the tenors of the market that stumble, it is the whole barnyard of the marketcap that goes in all directions by chirping. We’ll avoid an anxiety-inducing recap, but consider roughly that your altcoin portfolio has melted by between 15 and 20% in a snap of the fingers that Thanos would not have disowned in his effects.
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Only Solana (SOL) stands out in this falling tide, even having the luxury of tickling XRP and its 6th place in the rankings, after chasing DOGE out of the doghouse in recent days
And in the fall, as is often the case, traders exposed to high leverage effects have been the most impacted. If the specialized site
Bybt.com indicates a total of 2.58 billion positions liquidated, it is in fact more than 320,000 traders whose positions have been liquidated, a thought for them. It
may be hard to believe in the current headache, but after such a free fall, it will be time to rebound quickly. A rebound that could even have already begun with the DOT (Polkadot) currently recovering 5% or a Terra 10%, an opportunity to identify the most robust assets in a troubled situation.
In conclusion, keep in mind that this type of market purge obviously takes its toll, but also offers unique opportunities, the kind of opportunities that El Salvador’s President Nayib Bukele himself has decided to exploit by further increasing his country’s war chest in BTC
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