El Salvador signed up to buy another 150 BTC while Bitcoin crashed into the $ 42,000 area

Bitcoin unexpectedly fell to the $ 42,000 mark this afternoon and lost nearly 20% in the past 24 hours before returning to its current price levels. This is the steepest one-day decline since May 15, when Bitcoin price temporarily fell to nearly $ 33,000.

Source: TradingView

The market price of BTC fell 26.4% from a week-long support of $ 57,206 to $ 42,268 before bouncing back to the $ 47,000 level. According to ByBit data, the Bitcoin market has seen a total of $ 1.3 billion in liquidations in the past hour, including $ 735 million in long positions.

Total liquidation value for BTC. Source: Bybt

As a result, Bitcoin’s bear market single-handedly destroyed the two-month bull market since September 29th, when BTC rose more than 63% and on November 8th. However, many Bitcoin analysts, including TechDev, point to a similar trend in the price movement of Bitcoin every year.

https://twitter.com/TechDev_52/status/1449929136391311362?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Another reason Bitcoin fell to a two-month low could also be mainstream resistance to U.S. regulators who have invited prominent crypto CEOs to crypto asset hearings.

Despite concerns about volatility and non-compliance with traditional financial practices, Bitcoin continues to grow as a viable asset for jurisdictions with volatile economies.

According to a tweet from Salvadoran President Nayib Bukele, the Republic of El Salvador bought another 150 BTC amid the drop in prices.

https://twitter.com/nayibbukele/status/1467000621354135555?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Bukele also admitted missing out on Bitcoin’s bottom, as BTC price continued to slide towards the $ 42,000 region after the government bought at $ 48,670.

“Sorry to miss the floor.”

Following in the footsteps of El Salvador, the Zimbabwean government is considering adopting Bitcoin as mainstream. Former Brigadier General Charles Wekwete, permanent secretary and head of the Presidential Office and the Cabinet’s e-government technology division, confirmed that discussions with companies were already underway.

According to Wekwete, authorities intend to develop regulations to protect consumers from financial threats such as unregistered cross-border money transfers, offshore money transfers and money laundering.

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