A bitcoin flash crash on Monday morning has sent leading cryptocurrencies tumbling, wiping more than $200 billion from the crypto market.
Bitcoin dropped below $44,000 after falling more than 8 per cent in just a few hours, though even these losses were modest compared to its rivals.
Ethereum (ether) fell by more than 10 per cent, while Cardano (ada), Solana (SOL) and dogecoin all fell by more than 13 per cent.
Salvadoran President Nayib Bukele tweeted that he used the market crash as an opportunity to “buy the dip” and add to El Salvador’s stockpile, however some analysts warned that the latest price dip could form part of a longer term trend.
Other experts remain convinced that any short term volatility will ultimately be forgotten as bitcoin rises to new all-time highs in 2021.
You can follow all the latest news, updates and expert price predictions in our live blog right here.
Watch cryptocurrency experts discuss bitcoin price predictions
What is Solana? The crypto that defied the price crash – and is rising 200-times faster than bitcoin in 2021
El Salvador ‘buys dip’ during bitcoin price crash
14:09 , Anthony Cuthbertson
Bitcoin price crashes typically prompt one of two extreme reactions from traders and investors.
The first is to panic sell, which is usually the response of short-term holders and those new to the market. This forces the price down even further and induces more fear among other so-called ‘paper hands’, who also sell.
The second reaction is to use the price drop as an opportunity to acquire more bitcoin at a cheaper price. These so-called ‘diamond hands’ are often long-term holders who are familiar with its wild fluctuations but are bullish about its longer-term trajectory.
El Salvador’s president has proved himself to be in the latter camp, despite only recently buying bitcoin for the first time. Nayib Bukele revealed that he has “bought the dip” with a $6.7 million investment into the cryptocurrency.
You can read the full story here.
Bitcoin price flash crash prompts El Salvador president to ‘buy the dip’
Dogecoin founder rides out price crash in typical fashion
13:52 , Anthony Cuthbertson
Dogecoin founder Billy Markus has responded to the market-wide price crash by sharing a gif of the “This is fine” dog.
The meme-inspired cryptocurrency has seen some of the heaviest losses on Monday, falling by nearly 15 per cent and showing no signs of slowing down.
Having traded above $0.25 over the weekend, dogecoin is now threatening to fall below $0.20 for the first time since May. Despite these losses, the cryptocurrency is still up nearly 10,000 per cent since this time last year.
It’s not much consolation for Markus, who sold his original holdings years ago and only bought back in earlier this year (though still when dogecoin was below $0.20).
Bitcoin price flash crash prompts crypto market dip
12:29 , Anthony Cuthbertson
Bitcoin has suffered a series of mini flash crashes on Monday morning, pushing the price below $45,000.
Having traded close to $49,000 over the weekend, the cryptocurrency is now back at the levels it was at exactly one week ago.
The price fall has prompted a market-wide dip with other leading cryptos falling by between 5-15 per cent at the start of the week.
Of the top 10 leading cryptocurrencies, Solana (SOL) has been the hardest hit. The altcoin fell by more than 13 per cent over the last 24 hours, pushing its market cap down to $41 billion – $15 billion down from its peak earlier this month.