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El Salvador Purchases 100 More Bitcoins in the midst of Crypto Sell-Offs

El Salvador Buys 100 More Bitcoins Amid Crypto Sell-Offs and New Covid-19 Variant Scare

As reports of a new Covid-19 strain spread, tanking the price of many cryptocurrencies, El Salvador bought the dip. The country has added 100 more bitcoins to its treasury despite a recent warning by the International Monetary Fund (IMF), bringing the total number of bitcoins purchased to 1,220.

El Salvador Buys the Dip: 1,220 Bitcoins Purchased to Date

El Salvador has taken advantage of the Friday sell-off and purchased 100 more bitcoins as reports of a new coronavirus variant spread. Nayib Bukele, the president of Salvador, tweeted that his country had purchased the dip on Black Friday. “100 extra coins acquired with a discount,” he wrote.

El Salvador Buys 100 More Bitcoins Amid Crypto Sell-Offs and New Covid-19 Variant Scare

An advisory panel of the World Health Organization (WHO) on Friday classified the new Covid-19 variant, first detected in South Africa, as a highly transmissible virus, naming it “Omicron.”

The crypto market shed billions of dollars on Friday amid reports of the new coronavirus strain. The price of bitcoin fell from $59,165 Thursday afternoon to $53,798 Friday afternoon. BTC is trading at $54,830. 98 per coin at the time of writing based on data from Bitcoin.com Markets.

El Salvador Buys 100 More Bitcoins Amid Crypto Sell-Offs and New Covid-19 Variant Scare
Bitcoin’s price chart. Source: Bitcoin.com Markets

El Salvador made bitcoin legal tender on Sept. 7. At the time, the price of BTC was approximately $46,000.

Since bitcoin became legal tender, El Salvador has purchased 1,220 BTC altogether, according to announcements by Bukele.

The day before the country’s bitcoin law went into effect, El Salvador purchased two sets of 200 bitcoins. It bought 150 BTC more on Sept. 7 and 150 more coins on Sept. 20. Bukele said at the time, “El Salvador now holds 700 coins.”

Since then, El Salvador bought 420 more coins on Oct. 27, bringing the total purchase to 1,120 coins. Friday’s purchase pushes the country’s bitcoin stash to 1,220 coins. At the current price, 1,220 bitcoins are worth approximately $66.9 million.

President Bukele announced last week a plan to build the world’s first “bitcoin city” powered by a volcano and financed by bitcoin bonds. He stated that there would be no taxes in the bitcoin capital, except for value-added taxes (VAT).

However, a day after the announcement, the International Monetary Fund (IMF) warned the country against using BTC as legal tender. The IMF cited “significant risks to consumer protection, financial integrity, and financial stability” as the reasons, adding that it “also gives rise to fiscal contingent liabilities.”

What do you think about El Salvador buying the dip amid crypto market sell-offs as a new Covid-19 strain emerged? Please leave your comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Crypto Market Turning Point –

Crypto Market Turning Point — Most Cryptocurrencies Down 57% to Over 80% From Price Highs

Roughly six months ago, bitcoin and a number of digital assets reached all-time highs and the crypto economy crested above $3 trillion in value. Today is a different story as a great majority of cryptocurrencies are down between 57% to over 80% against the U.S. dollar.

While Cryptos Are Down From the ATHs, 2020 Holders Are Still in the Green

On November 9, 2021, or 196 days ago, the crypto economy was valued at over $3 trillion, and today it’s worth roughly 56% less at $1. 31 trillion. Six months ago, bitcoin (BTC) touched an all-time high (ATH) at $69K per unit and today, it’s down more than 57% in USD value.

The second leading asset, ethereum (ETH), has lost 59. 85% after reaching $4,847. 57 per ether six months ago. The fourth-largest crypto asset BNB is down 52. 65% after tapping $689 per unit. XRP is not even close to its January 07, 2018 ATH the digital asset tapped four years ago when it reached $3. 40 per coin. XRP today is down more than 87% against the U.S. dollar from that point in time.

Crypto Market Turning Point — Most Cryptocurrencies Down 57% to Over 80% From Price Highs
Since November 10, 2021, or roughly six months ago, bitcoin (BTC) changed hands for $69K per unit. At the time of writing, bitcoin has lost more than 57% since its all-time price high.

Cardano (ADA) hit its ATH nine months ago at $3. 10 per ADA and currently, ADA is down 83.5% against the U.S. dollar. Solana (SOL) touched its ATH seven months ago and is down 81.5% in USD value.

The tenth-largest crypto asset today, dogecoin (DOGE) is down 88.8% from the meme coin’s ATH a year ago. While prices are down since 2021’s high, crypto investors that purchased digital assets in 2020 have seen it their cryptocurrencies rise. For instance, the price of bitcoin (BTC) since 2020 is up 303. 28% and ethereum (ETH) is up 465.70%.

The same is true for many of today’s top coins. Binance’s BNB token has jumped 173. 53% in two years and cardano (ADA) is up 443.83%. Gains are even bigger for those who purchased crypto assets in 2017 as bitcoin (BTC) is up 1,294. 85% since that year. The second leading crypto asset ethereum (ETH) is up 8,985. 15% since 2017 against the U.S. dollar.

XRP holders have seen the most gains since 2017 as XRP has skyrocketed in value by 31,346. 47% during the last four years. 2017 was a bullish time for crypto investors as BTC hit an all-time price high that year at $20K per unit and 2021 was similar in terms of bullish price values.

Crypto’s Strong Correlation With Stocks, 289-Day Bear Runs, and Further Capitulation

Market strategists believe that most bear markets last less than 9.5 months. Moreover, in recent times cryptocurrencies have been correlated with equities markets and more specifically stock indexes like Nasdaq 100 and the S&P 500. This could indicate that the crypto bear market will continue until the stock market bear runs are over.

Bank of America strategists recently detailed that the S&P 500 has recorded a total of 19 bear market cycles. The average duration for each cycle was roughly 289 days and the S&P 500’s average bottom was 37.3% lower than the ATH.

If cryptocurrencies follow the same pattern, it could mean that bearish sentiment could continue for three more months. This is assuming history repeats itself and digital assets follow the current correlation to equities. Unfortunately for crypto investors, S&P 500’s average drop of 37.3% is nothing like the lows the crypto economy has seen during extreme capitulation. Three bitcoin (BTC) bottoms have been more than 80% lower than the ATHs recorded during the bull cycle.

While the top ten crypto assets are down 57% to over 80% already, prices could go much lower. An 80% drawdown from BTC‘s $69K high would be $13,800 per unit and an 80% cut in ether’s ATH value would result in a price of $970.

Currently, crypto assets like BTC and ETH are seemingly at a turning point that will take the value one of three ways. The price of bitcoin could stabilize in this area for quite some time. However, it could rise back into a bullish scenario or drop even further, resulting in more capitulation.

What do you think about crypto assets being down 57% to over 80% lower than their price highs? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.

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Bitcoin, Technical Analysis: Crypto Bears Hold BTC Below $30,000

Bitcoin was lower for a second consecutive session, as bears maintained recent pressure on crypto markets. This pressure also saw ETH move lower, as it continued to trade under $2,000 during hump-day.

Bitcoin

The world’s largest cryptocurrency once again traded below $30,000, as bears continue to maintain a chokehold on prices.

As of writing, BTC/USD is trading at $29,502. 71, which is roughly 1% higher than yesterday’s low of $28,786.59.

Wednesday’s movement in bitcoin is ultimately a continuation of yesterday’s move, with prices now consolidating at its current range.

BTC/USD – Daily Chart

This range sees prices hovering at a floor of $28,800, with a resistance level of $30,500, which has not been truly broken since early May.

In addition to the price ceiling, relative strength is also tracking at a resistance point of its own, which is under 40.

Until we see a move past this point, then we will likely see a continuation of current price consolidation.

Ethereum

ETH moved to a lower low during today’s session, as its own price continues to trade under a key point of $2,000.

The world’s second largest cryptocurrency dropped below its support level on Tuesday, hitting an intraday low of $1,920. 69 in the process.

This saw ETH/USD about $30 below its support level at $1,950, which has mostly held firm during this latest round of bearish activity.

ETH/USD – Daily Chart

Overall, ethereum is now in its second week trading at its current floor. After the massive declines experienced in April and May, consolidation was to expect.

Looking at the chart, you can see that the 10-day moving average in red is moving sideways, which is a strong indication of a future change in momentum.

Traders will now wait to see if bulls will use this signal as an indicator, prior to re-entering the market.

Will ETH‘s $1,950 support level be broken this week? Please leave your comments below.

Eliman Dambell

Eliman has a unique perspective on market analysis, having been a broker director, retail trading educator, and market commentator for Crypto, Stocks, and FX.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services mentioned here.

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Will Terra recover? Expert analysis, price prediction and where to purchase Terra

The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar. This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%. Now that…

The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar.

This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%.

Now that Terra has lost 99% of its value, is there any hope for recovery? You’ll find out more about the efforts of its founders to get it running again.

If you’re attracted by unique features and want information on where and how to purchase Terra, this guide will help you.

Top Places to Buy Terra Now

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What’s Terra?

Terra Luna was a crypto project that Terraform Labs, an in-house tech company, created. Its goal was to promote crypto adoption by creating a set decentralized stablecoins that can be used to perform DeFi transactions.

Terra reanimation action plan

Do Kwon, the founder of

Terra has a plan for reviving the coin. To bring TerraUSD back to $1, the first part of the plan includes a massive burn of TerraUSD (USTUSD).

They plan to burn more than 371 million UST on the Ethereum Mainnet and any UST left in the Terra community pool.

The second part is to stake 240 million LUNA tokens to stop whales from seizing control and to stabilize network governance.

Developers also stopped Terra’s blockchain and stopped all pending transactions. This was done to prevent people buying LUNA at an extremely low price.

Should Terra be bought today?

Given the difficulty of predicting cryptocurrency prices accurately, it’s important to conduct a thorough market analysis before making any financial decisions. Do not invest more than what you can afford to lose.

Terra price prediction

Many investors are pessimistic about Terra’s prospects. The Motley Fool says it is best to avoid the project, despite its low price.

Digital coin price and forecast see little hope for LUNA. They predict an end-of year price of less than 1 cent bzw. 0. 6 cents.

However, experts disagree. Investing Cube believes that LUNA can recover. LUNA will gain if the stablecoin is revalued to $1.

Wallet Investor did not adjust its bullish prediction of LUNA before the crash. They predict 1 LUNA will trade for $151 in May 2023. Finally, Gov Capital anticipates LUNA to be worth $108 a year from now.

Terra on social media

$1,000,000 invested in $LUNA last week would be worth $3 today. pic.twitter.com/PYaOwuPgJ5

— Watcher.Guru (@WatcherGuru) May 15, 2022

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