Total crypto market capitalisation has fallen by 11% over the past 24 hours, with seven of the 10 largest tokens falling in value by up to nearly 20%, with the rout started as El Salvador made bitcoin as legal tender yesterday.
The digital currency universe is now worth USD2.11trn, according to data from coinmarketcap.com, with bitcoin seeing an 11.95% fall to USD46,415.93, as of midday Asia trading.
Bitcoin had been trading as high as USD52,656 on Monday, as traders anticipated a bump from El Salvador's implementation of its legal tender policy.
Polkadot crashes 19.35%
Ethereum, Cardano, and Binance Coin, the next three largest tokens by market cap after bitcoin, saw their price fall by 12%, 12.3% and 16.5% respectively, while the biggest loser of the top 10 cryptocurrencies was Polkadot at 19.35%. Meme token, Dogecoin was down 16%.
Of the three coins not affected by the price fall, two - Tether and USD Coin - are fixed against the US dollar. Solana was the one outlier, rising 0.94% to reach USD174.55.
“Bitcoin is lower on a 'buy leading up to the big event, sell the fact' reaction to El Salvador’s historic moment of embracing Bitcoin. What accentuated this moment was MicroStrategy CEO and prominent Bitcoin proponent Michael Saylor’s encouragement for cryptocurrency traders to buy $30 in BTC in solidarity with El Salvador,” said Ed Moya, market analyst at exchange Oanda.
"Buy the dip"
The fall in bitcoin's price was accompanied by a massive increase in BTC derivatives volumes on crypto exchanges over the same period. The three largest exchanges by volume, Binance, OKEx and FTX saw an increase in activity of between 113 %and 131% in the 24 hours up to midday Asia trading.
El Salvador’s president Nayib Bukele was, however, undeterred by the crypto market rout - tweeting to his 2.8 million followers, that now is the time to “buy the dip”.