Bitcoin slid in price from above $52,000 to below $44,000 on Tuesday following issues with the adoption of the cryptocurrency as legal tender in El Salvador, but has recovered slightly on Wednesday.
Bitcoin’s nosedive has also had an impact on other cryptocurrencies, including Ethereum (ether), Cardano (ada), and dogecoin.
Currently the global crypto market is worth $2.03 trillion, which is about 11 per cent lower than its value a day earlier.
According to a model-based prediction by pseudonymous Dutch analyst PlanB, bitcoin may reach a value of $100k+ before the end of 2021.
British banking giant Standard Chartered also noted in a recent report that Bitcoin’s value would peak around late 2021 or early 2022 to above $100k.
Other forecasts say current trends could result in lows below $20k for the cryptocurrency by the end of the year.
You can follow all the latest news, updates and expert predictions right here.
Bitcoin price crash offers crypto ‘fire sale’
More analysts have been weighing in on the 15 per cent price crash yesterday, giving their opinion on what it means in a broader context.
“This is a false dip,” says Nick Spanos, an early adopter and well-known figure within the cryptocurrency space, who is currently in El Salvador.
“Big finance and the media say it’s because there was a bumpy rollout in El Salvador. I’m in El Salvador right now and things are looking spectacular. Even Steve Jobs had hiccups in releasing brave new products.
“Bitcoin’s price could even be back by next week. I still expect bitcoin to breach $100,000 by the end of the year, while Ethereum is on course to hit $10,000 by then. Buying more altcoins and Bitcoin right now, now that there’s essentially a fire sale as a result of the dip, will almost certainly prove to be a great move.”
You can read the full story here.
Anthony Cuthbertson8 September 2021 20:43
‘When in doubt, zoom out’
A popular adage among long-term bitcoin investors during moments of sharp market volatility is “when in doubt, zoom out”.
The belief is that the short-term price trajectory has little bearing on the longer term direction, and that sudden crashes or surges can generally be ignored.
With this in mind, we’ve put together a chart showing the zoomed out significance of Tuesday’s price crash. Even after dropping by more than 15 per cent, bitcoin is still up more than 300 per cent from this time last year. The next few weeks will prove key to determining how much this adage actually rings true.
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Anthony Cuthbertson8 September 2021 18:53
Bitcoin price steadies
The price of bitcoin finally appears to have steadied after yesterday’s sudden crash.
It remains around $46,000 – roughly $8,000 down from yesterday’s peak but more the $2,000 up from the price it bottomed out at.
It seems to have had a calming affect on the rest of the market, with Ethereum (ether), Cardano (ada) and Binance Coin all levelling out over the last few hours.
There have been a few altcoins that actually bucked the trend, most notably Near Protocol (NEAR). The token saw gains of more than 40 per cent over the last 24 hours, ranking it in the top 30 most valuable cryptocurrencies on CoinMarketCap.
Anthony Cuthbertson8 September 2021 15:07
SEC to sue Coinbase
The SEC has warned Coinbase that it is planning to sue the exchange over its planned ‘Lend’ feature, which will allow users to earn interest from their holdings.
The regulator served a Wells notice to signal its intention to take legal action, though Coinbase’s chief legal officer Paul Grewal claims to not know what the issue is.
“Rather they have now told us that if we launch Lend they intend to sue. We asked if the SEC would share their reasoning with us… they refused,” he wrote in a blog post.
“Mystery and ambiguity only serve to unnecessarily stifle new products that customers want and that Coinbase and others can safely deliver.”
You can read the full story here.
Anthony Cuthbertson8 September 2021 14:07
Bitcoin price volatility dismissed by long-term holders
Long-term holders of bitcoin have urged investors to remain patient following the latest price crash.
Michael Saylor, whose software company MicroStrategy owns more than 100,000 bitcoins, believes bitcoin will continue to rise in price over the long term and has the potential to rise in value by more than 100-times. He also revealed he personally bought $30 worth of the cryptocurrency yesterday in support of El Savador’s Bitcoin Law coming into effect.
Today he tweeted: “If you aren’t willing to own bitcoin for 10 years, don’t even think about owning it for 10 minutes.”
Anthony Cuthbertson8 September 2021 13:35
Bitcoin’s value is still down by about 9 per cent compared to its price 24 hours earlier.
Almost all cryptocurrencies are down compared to yesterday’s prices, and it’s still all red with very little signs of recovery.
(Coin Market Cap)
Global crypto market prices are almost down by 10 per cent compared to values 24 hours earlier.
Vishwam Sankaran8 September 2021 12:20
Bitcoin woes continue into second day
Bad news for anyone hoping for a swift return after yesterday’s crash: there’s been no recovery yet. Though hasn’t fallen lower than it did in the wild moments after the crash, either. Here’s the latest from Coinbase:
(Coinbase)
That has left everything looking very red. Prices are down almost 15 per cent over the last 24 hours, according to CoinMarketCap. And nothing – not even the much-hyped Solana – has been left untouched.
(CoinMarketCap)
Andrew Griffin8 September 2021 08:09
Bitcoin buys McDonald’s and Starbucks in El Salvador
The price crash has distracted from the big news of the day, which is the roll out of bitcoin as a legal form of currency in El Salvador.
People in the country have been sharing their experiences across social media, with global franchises like McDonald’s and Starbucks now forced to accept the cryptocurrency as a form of payment.
“This is to all the critics who said bitcoin would never be used to buy coffee,” tweeted Mario Aguiluz. “Just paid for mine at Starbucks in El Salvador.”
It seems issues with the Chivo bitcoin wallet have now been resolved.
Anthony Cuthbertson7 September 2021 17:59
El Salvador president ‘buying the dip’
El Salvador President Nayib Bukele has added to the country’s crypto holdings by purchasing a further 150 bitcoins during this afternoon’s crash.
“Buying the dip,” he tweeted.
El Salvador bought its first 200 bitcoins yesterday ahead of the Bitcoin Law coming into effect today, plus a further 100 a few hours later. That brings El Salvador’s total holdings to 550 bitcoin, worth roughly $25 million at the current exchange rate.
President Bukele added that the “discount” from the price crash saved the country roughly $1 million.
Anthony Cuthbertson7 September 2021 17:30
Bitcoin price crash causes Coinbase to go down
Bitcoin’s price crash has caused issues with leading cryptocurrency exchange Coinbase, as users go online to either cash out their crypto holdings or buy the dip.
The company said it was “aware transactions are currently delayed or cancelled at elevated rates and our apps may be experiencing errors.”
It is not the first time Coinbase, which went public earlier this year, has suffered problems during periods of extreme market volatility.
You can read the story here.
(AFP via Getty Images)
Anthony Cuthbertson7 September 2021 16:46