Bitcoin, despite making an impressive value rebound over the last few weeks, has tripped once again. The latest charts from Coindesk show it has haemorrhaged more than $6,000 today alone amid a crypto “flash crash”. And traders have voiced their fears that it could show the start of a devastating trend.
The cryptocurrency flash crash has wiped a total of $400 billion off the market as El Salvador adopts Bitcoin as legal tender.
A mass selloff ahead of the Central American nation’s move saw values wiped off of most cryptocurrencies.
But BTC emerged among the most profoundly affected of the bunch, dropping 10 percent of its overall value.
El Salvador has stumbled on its first day accepting the coin as legal tender, with heightened trading causing outages affecting exchanges.
Experts believe the rocky rollout has caused Bitcoin to tumble, although they aren’t completely certain.
Bitcoin is now in the midst of ironing out a “new trading range”, according to Ed Moya, a senior market analyst at Oanda.
Mr Moya told Forbes the coin is lower on a “buy leading up to the big event, sell the fact” reaction to El Salvador.
He added the coin’s fundamentals “remain intact” while prices strive for a new range “between the $46,000 and $53,000 levels.”
Bitcoin has readjusted since its plunging into today’s crevice, recuperating some of its value.
The token managed to bounce back to $47,000 and it has since settled around $46,000.
Other coins weren’t so lucky, however, and have seen their values tumble more than 10 percent.
The effects of the crash have spread across established cryptocurrencies and into their altcoin counterparts.
A snapshot of today’s market shows the following losses:
Bitcoin: $46,819.70 (9.20 percent)
Ethereum: $3,440.49 (12.22 percent)
XRP: $1.08 (21.87 percent)
Cardano: $2.39 (15.40 percent)
Stellar: $0.333472 (21.58 percent)
Dogecoin: $0.249241 (18.33 percent)
Polkadot: $27.47 (19.52 percent)
Chainlink: $28.17 (20.09 percent)