Bitcoin accelerated its sell-off, dipping to lows of $34,017 seen at press time. Altcoins suffered a greater blow as many recorded deeper losses of more than 15%. Ethereum is down 17.52% at a current price of $2,515 as per coinmarket cap data. Theta, LUNA, Harmony are down by nearly 20% in the last 24 hours.
El Salvadoran President Nayib Bukele took to Twitter to announce that his ‘company’, El Salvador just bought 410 bitcoin for only 15 million dollars, happy he didn’t miss the dip this time.
”Nope, I was wrong, didn’t miss it. El Salvador just bought 410 bitcoin for only 15 million dollars. Some guys are selling really cheap”
Earlier in the news, The government of El Salvador announced its plans to offer small and medium-sized companies (SME) $10 million in crypto-based loans as of the first quarter of 2022.
Conamype’s President, Paul Steiner states that Acumen, Solana-based lending, and borrowing platform, will provide U.S. dollar funding to El Salvador’s National Commission for Micro and Small Enterprises (Conamype), a government entity that plans to allocate financing to local informal entrepreneurs and self-employed workers.
Cryptoanalyst, Michael van de Poppe says the $30k level seems attractive to buy for most traders “Back in June? People are waiting for $23,000 to $25,000 to buy. Right now? People are waiting for $30,000 to buy. Similar fake breakout on the upside to nuke afterward into support.”
Galaxy Digital CEO, Mike Novogratz earlier predicted that Bitcoin might hit bottom lows at $38,000 as institutional investors prepare to buy amid a sell-off as 2022 progresses. However, as it stands, Novogratz believes crypto has already had a decent sell-off and is running into some buying support. He gives one condition on which this might happen—if stocks recover, saying, ”Crypto will have a hard time rallying until stocks find a base.”
On-chain analytics firm IntotheBlock suggests that the most important support level for Bitcoin lies between $38,900 and $40,200. Such a critical demand barrier must hold to prevent BTC from a steep correction toward $30,000.
According to IntotheBlock, BTC and ETH are showing an extremely high correlation to the Nasdaq 100 of 0.86, suggesting this might play a part in Bitcoin’s recovery. Bitcoin trades at $36,374 at press time.
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