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A generalized fall in the cryptocurrency market, what is it due to?
In recent days we have witnessed how a large part of the cryptocurrency market has had a fairly significant crash.
Even cryptocurrencies like bitcoin have fallen by around 11%. This has caused the market to lose more than 2 billion dollars in a very short period of time.
This has generated a great panic in investors, especially in the less experienced, which has generated a snowball effect. This has dragged several cryptocurrencies down quite a bit, which has hit the entire market.
All these drops are due to the fact that the financial market is going through a period of volatility.
An increase in inflation on a world scale has caused countries to shield their monetary policy. This puts the injection of liquidity at risk.
Added to this, we have the problem of the pandemic, since the recent appearance of a new variant of the coronavirus has caused concern.
And it is that investors are not clear how this could affect the world market, especially when it is just beginning to recover from the impacts of the coronavirus.
A clear example of this can be seen in the shares that have had a drop of around 4%.
What have been the most affected cryptocurrencies in this decline?
Some currencies were more affected than others with this price drop in the market. Next, we will tell you which cryptocurrencies suffered the most from the decline.
Solana, Cardano and XRP : These three coins posted a decline of around 18% in the last two days. Being in this way, one of the most popular currencies that felt the effect of this market crash.
Ethereum : This is the second most important currency in the world, second only to bitcoin. In this case, the currency suffered a contraction in its price of around 14% in the last two days.
Bitcoin : The bitcoin has not been oblivious to the decline of the market, this coin had a fall of 11% in its price. Currently, it has had a recovery in its value, but it fell to $42,300 per unit.
An opportunity to buy cryptocurrencies
You probably think that this drop could cause many investors to end up selling their cryptocurrencies. However, when these collapses occur, it is when investors go out to multiply their capital.
Traders tend to sell their positions when they start to decline and once the decline has taken place, they buy again. This means that they can multiply their cryptocurrencies.
In the same way, this opens the door for new investors to enter, since it will cost less to buy.
El Salvador bets on buying more bitcoins in the face of this decline
As we have already mentioned, when there is a significant fall in the market, investors see a clear opportunity.
And this is something that has happened in El Salvador, where its president Nayib Bukele has announced that taking advantage of the decline in bitcoin, the country will buy 150 bitcoins that will become part of that country's reserves.
Let us remember that in El Salvador, bitcoin is a legal tender and a good part of the population uses this currency to carry out their transactions.
So, this is a measure that seeks to grow the country's reserves.
