Bitcoin Suffers 10% Pull Back On El Salvador’s Debut, Funding Rates Dip

Bitcoin’s price plummeted over 10% on early Tuesday, as El Salvador announced that it would officially accept the major cryptocurrency as the nation’s legal tender. According to CoinMarketCap, Bitcoin’s slump from Monday accelerated as the crypto failed to hold its $50,000 price level — sliding from $51,000 to $44,700 within a single hour. The sudden sell-off resulted in $1.44 billion in futures liquidations of Bitcoin trades in the past 24 hours, according to data from ByBt. The single largest reported liquidation occurred on Huobi-BTC — worth $43.7 million at the time. As expected, the vast majority of the liquidations were longs, representing about 88% of the total liquidations. Since dropping to weekly lows, the price of Bitcoin rebounded up to as high as $47,500. At press time, BTC is hovering at $46,500 across major exchanges Binance, Coinbase, and Huobi. Related Reading | New to Bitcoin? Learn to Trade Crypto With the NewsBTC Trading Course Following the brunt of the pullback, El Salvador president Nayib Bukele tweeted that he is “[b]uying the dip,” purchasing another 150 BTC worth about $6.9 million, adding on top of the 400 BTC position. The average cost of the purchase appears to be around the $46,000 price range. https://twitter.com/nayibbukele/status/1435260422110732300 Is This the “Reset” Bitcoin Needed to Trend Higher? Data from Glassnode shows that the mean Bitcoin funding rate (average across a...