If you are watching the crypto market, you probably did not miss the fall yesterday, or the so-called “flash crash”. Approximately was discarded within two hours $ 330 billion.
The market experienced a real shock
Yesterday’s slump affected virtually every single cryptocurrency. According to CoinMarketCap, we have witnessed the liquidation of $ 330 billion, with market capitalization alone falling to $ 1.95 trillion. Subsequently, however, a rapid recovery came to about $ 2.12 trillion. The overall slump began as usual with BTC, which fell from $ 52,000 to $ 44,000.
What could have caused the slump?
What, or who specifically caused this slump is debatable. Several traders and analysts believe that we have simply gotten into a position where whales were closing their longs. Some believe that the decline was caused by the official launch of BTC in El Salvador.
However, an important thing needs to be mentioned. Such sudden falls can be positive in some respects. The market will be cleared before further potential growth.
El Salvador officially runs with BTC
Yesterday’s decline in BTC and the entire crypto market was also used by the aforementioned El Salvador. President Nayib Bukele boasted that they had used the spill to buy 150 BTC.
Buying the dip 😉
– Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
So whether yesterday’s crash damaged BTC or not, one thing is clear. BTC did not lose strength and his journey of returning to an all-time high may continue.
Hitesh Malviya, the founder of itsblockchain.com portal, also commented on the situation:
“I’m still trying to figure out what really happened. Mass liquidation across the market. It reminds me of the historic slump of March 2020. Next time, think twice before opening a leverage shop. However, BTC is still in a bullish trend, as long as it stays above $ 43,000, we can bounce back. ”