Global markets experienced an extended selloff after fears of contagion from China Evergrande Group triggered a broad selloff in cryptocurrency prices. The world’s largest crypto, Bitcoin, plunged to its lowest level since early August after sagging as much as $40,000.
According to CoinGecko, prices for bitcoin traded 10% lower today, reaching $42,500, while ether, the cryptocurrency linked to the Ethereum chain, dropped below $3,000, trading at $2,986. Dogecoin declined 9% to $0.20 over the past 24 hours, whereas Cardano fell about 10%. Tether(USDT) and Binance USD(BUSD) both rose marginally over the past 24 hours.
According to CoinShares, cryptocurrency investment products and funds continued to see inflows for a fifth consecutive week. The week ended Sept. 17 saw crypto inflows of $41.6 million, with bitcoin getting $15.3 million and ether products netting $6.6 million.
Bitcoin has been the hardest hit by the negative investor sentiment, with inflows occurring in just three of the last 16 weeks, according to a report. A total of $4.2 billion was infused into bitcoins for the year.
As a result, El Salvador’s president Nayib Bukele said the country purchased the dip in Bitcoin, adding 150 tokens to its holdings to raise them to 700, which at current prices is about $32 million.
On Monday, El Salvador took advantage of the dip and bought 150 additional bitcoins. „We just bought the dip. 150 new coins! President Nayib Bukele tweeted that El Salvador now holds 700 coins.
The nation bought 150 bitcoins earlier this month in a move that triggered protests and technical glitches on the day it became the first country to adopt bitcoin as legal tender. A network of 200 bitcoin ATMs is being rolled out in El Salvador, and Chivo kiosks, with staff members who will introduce customers to bitcoin, are being built around the country.