Key Insights:
- In the latest Bitcoin news, El Salvador buys the dip, accumulating another 1,090 BTC as the crypto market retreats.
- The Bitcoin price has dropped below $90K as panic and fear grip crypto investors.
- Nakamoto CEO David Bailey warns that the price action shows “something big is happening” and warns investors to “stay safe.”
El Salvador has made headlines in the Bitcoin news column with its BTC stance, highlighting the Central American nation-state’s BTC commitment during the broader selloff. As panic rippled through global markets and the Bitcoin price plunged below $90,000, President Nayib Bukele’s government snapped up another 1,090 BTC.
The country spent nearly $100 million to increase the national reserves to an impressive 7,474 BTC, valued at around $685 million, according to on-chain tracker Lookonchain.
The country’s dip-buying spree was corroborated by Bukele, who posted a screenshot of the country’s total BTC holdings, along with the word, “Hooah!”
The timing is unmistakable: rather than retreat in the face of volatility, El Salvador turned the crypto market dip into an opportunity, even as global sentiment turned sour.
Bitcoin News: El Salvador Buys Amid Epic Slide for BTC Price
El Salvador has once again ignited discussions in the Bitcoin news sector with its latest move to add more BTC. Notably, this comes after the BTC price touched euphoric all-time highs near $126,000 just six weeks ago, with the price now finding itself teetering below $90,000.
Bitcoin price had slid to as $89,300 at the time of writing. That’s a 30% drawdown in less than two months, as crypto market traders wrestled with chronic leverage and the growing chill of macro unease.
To make matters worse, last week Bitcoin closed below the 50-day moving average, a clear bear market sign.
Global macro analyst The Kobeissi Letter spoke of the unwinding as an event driven by leverage and contained to the crypto market.
Yet on Tuesday, as tech stocks began to slide worldwide, the BTC price was sucked down in the contagion.
Tech Selloff and the Nvidia Factor Weighs on Bitcoin Price
The backdrop to the latest rout in Bitcoin price isn’t only crypto-native. Wall Street, too, is in Bitcoin news focus, with global tech shares getting hammered and a wave of nerves washing from Silicon Valley to Seoul.
The trigger? Investor jitters circling the entire artificial intelligence trade, personified by the sudden reversal in Nvidia.
Nvidia, the darling of the “AI supercycle,” faces pivotal earnings this week just as big names like Peter Thiel’s Thiel Macro and SoftBank trim their holdings, casting a shadow over the entire sector.
Nightmares of an “AI bubble,” long touted by the likes of infamous short seller Michael Burry, are intensifying. FOMO-fueled mega caps are being repriced under harsher scrutiny. As Nvidia goes, so does the market mood.
The interconnectedness is staggering. The BTC price correlation with the Nasdaq is at its highest when tech stocks slide.
As tech stocks crater, risk capital becomes less abundant. That forces crypto market speculators to unwind leveraged bets in a painful feedback loop.
Macro players no longer see Bitcoin as an idiosyncratic hedge; it’s just another asset on the risk spectrum.
Is There Trouble Underneath Crypto’s Surface?
What’s happening under the hood of crypto? In the absence of fresh spot ETF inflows, the narrative has shifted to relentless deleveraging.
Offshore exchanges, more permissive with leverage, have borne the brunt of cascading liquidations; a dynamic that is compounding spot price volatility even as US-regulated platforms see steadier hands.
Yet in the midst of this, the foundational narrative of Bitcoin, the nation-state bid is alive and well. Every time Nayib Bukele’s government buys, it signals to the market: “This is long-term, not a casino.”
But whether that faith will be rewarded remains up for debate; even the most patient crypto treasuries are learning there are no easy victories in a bear cycle.
Is There More Pain to Come for Bitcoin?
Many analysts, including Crypto Banter’s Ran Neuner, on-chain analyst Checkmate, and The Kobeissi Letter, have called the bottom already. However, looking at the broader market picture, it appears that this bear cycle could be just getting started.
Longtime Bitcoin advocate and Nakamoto CEO David Bailey struck a notably cautionary tone.
He pointed out that the BTC price action was a sign of “something big” happening in the crypto market. Besides, the latest Bitcoin news showed that he has urged followers to “stay safe” as market turbulence intensifies.
While Bailey has previously called for $145,000 BTC price by year-end, his latest commentary hints at a period of acute volatility and possible downside as the crypto market recalibrates in real time.
While the ultimate floor for the BTC price remains vastly higher than today’s level, short-term pain fueled by macro crosswinds, the global tech selloff, and excessive leverage is not over just yet.