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Bitcoin drops to $ 40,000 due to panic
Bitcoin falls to around $ 40,000 on Tuesday amid market turmoil
Sep 21, 2021
1 min read
Anna BakkerNews analyzer

The fall in the markets is associated with the fear of default by Chinese companies.

Large speculators have already collapsed Bitcoin on the Binance exchange and the danger of another series of avalanche-like sell-offs remains.

Bitcoin lost more than 8% on Monday, the fall continued on Tuesday, the main cryptocurrency updated its recent lows. At the same time, the panic sell-off carried over to the stock market.

Investors fear the default of the Chinese real estate developer Evergrande, which has the world's largest debt in this area of ​​business. Negative sentiment is added by expectations of a cut in asset purchase programs at the next Fed meeting, which will be announced on Wednesday.

According to the CEO of Valkyrie Investment, Lee Wald, the sale of digital assets is quite expected. Traders started to go into the cash, fearing that the stock market will renew its lows at the end of the trading session. At the end of the week, Bitcoin futures and options are being experimented with, which could cause increased volatility in the market.

Meanwhile, according to ByBt, traders are sending bitcoins to the Binance exchange, which is a dangerous signal. If the amount of cryptocurrency on the exchanges increases, this could threaten the market with a new collapse.

The fact is that traders often transfer their digital assets to the exchange for the subsequent sale and withdrawal of fiat money. This is exactly the behavior that traders observed from mid-spring to the bitcoin crash. BTC is likely to bottom out and sales will continue in the coming days.

The collapse of the cryptocurrency is associated with the weakening of the network. But BitinfoCharts also reports that the average daily blockchain count has dropped from 289,000 to 200,000.

The Republic of El Salvador uses the dive sale and continues to buy bitcoins. The country bought another 150 bitcoins, President Naibib Bukela said. El Salvador now has 700 bitcoins worth $ 32 million in reserves. El Salvador was the first country in the world to recognize cryptocurrency as a viable option on September 7 and began adding it to its reserves.

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