El Salvador “Buying The Dip” After Crypto Clobbered

Update (1130ET):  Coinbase is suffering delays/outages for some…

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Update (1120ET): Bitcoin prices are spiking back higher after getting clubbed like a baby seal earlier…

It appears El Salvador is “buying the dip”…

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Bitcoin (and Ethereum) just took a second, larger, leg lower after ramping across the long weekend ahead of El Salvador’s ‘Bitcoin Day’ legal tender rollout.

Bitcoin plunged from $53k to below $46k…

Source: Bloomberg

Did someone want to show El Salvador the error of their crypto adoption ways?

Cointelegraph contributor Michaël van de Poppe suggests Bitcoin needs to hold the area between $49,500 and $50,000 in order to preserve its trajectory.

“If that is holding, we’re going to look at $58,000 next,” he said in his latest YouTube update.

“If it doesn’t hold, I’m going to look at $44,000 next, as there might be a swift downwards move.”

And Ethereum has crashed back to almost $3000 from $4000…

Source: Bloomberg

Some chatter that the ETH move was triggered by short-term rotation to Solana after NFT headlines.

Sam Bankman-Fried, CEO of crypto derivatives platform FTX, announced Solana’s integration into FTX’s upcoming nonfungible token (NFT) marketplace.

On Monday, Bankman-Fried revealed that the new marketplace would enable NFT creators and owners to trade their digital arts cross-chain using Solana and Ethereum. The platform would also make it possible to trade NFT collections from rivaling marketplace OpenSea on FTX.

The NFT marketplace went live on Monday and is hosted by FTX.US, a United States-regulated cryptocurrency exchange backed by FTX. That enables United States users to mint and trade NFTs via FTX.

Interestingly this rapid down move across crypto fits with JPM’s Nick Panigirtzoglou’s comments from last week suggesting some of the froth was expected to leave the market in the short-termThe previous phase of retail investors’ “mania” into cryptocurrency markets was between the beginning of January and mid-May when the share of “altcoins” had risen from 13% to 37.6%. While far from the record high of 55% seen in January 2018, at 32.6% the share of “altcoins” looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor “mania” rather than a reflection of a structural uptrend. The mirror image is an uncomfortable low share for bitcoin in particular which at 42%  currently sits at uncomfortably low level by historical standards .

Notably gold is also getting clobbered this morning, back below $1800…

Benoit is in da house!!

Is the BIS trying to teach these fiat-deniers a lesson?