It was supposed to be a day of celebration for El Salvador’s adoption of Bitcoin as a legal tender, but it turned into a bloody day for the cryptocurrency market. Bitcoin, Cardano, Ethereum, among others are down more than 15% this Wednesday (7th).
The cardano that had been in strong upward movement has already fallen more than 20%, according to data from CoinMarketCap. Binance Coin the drop is at around 18%.
In Brazil, in reais, the market opened with bitcoin at R$275,000 and, at the moment, it is R$237,000. A drop of R$ 40 thousand in a few hours, according to the Bitcoin Portal Index.
It is not yet known exactly what the causes of the fall are. From natural fixes to whale profit taking, even FUD to conspiracy theories involving the IMF and big banks may have contributed to the market’s bloodletting.
Large drops are recurrent in the cryptocurrency market. Although the upward movement was strong, it is worth remembering that on July 20, bitcoin had dropped to below US$ 30,000. In reais, the coin was costing R$ 156 thousand.
As said by the analyst trader of the Bitcoin Portal, Marcel Pechman, sudden fluctuations are part of the crypto market, which in addition to being incipient, has few participants. This clean brings room to reach even higher levels and proves the resilience of Bitcoin.
El Salvador and Bitcoin
The president of El Salvador, who had announced the purchase of over 200 bitcoin on Monday (06), said via Twitter that he had purchased another 150 BTCs this fall.
He also thanked the IMF and stated that he had saved on printing paper.