The price of Bitcoin (BTC) registered a sharp drop in a matter of less than an hour. According to CoinMarketCap, the price dropped by more than 9%, from US$50,000 to around US$43,000. The drop took the market by surprise, as the settlement data show.
The drop was of such proportion that in less than one, there were approximately R$ 14.9 billion in liquidations. Part of that drop was recovered and the price is now quoted at around US$47,000. However, performance is still negative, creating a strong bearish candlestick on the chart.
The largest of these settlements took place on the Huobi exchange and caught a single trader. The transaction resulted in an individual loss of an impressive US$43.7 million, or R$226 million at the current price.
Among the largest cryptocurrencies in the market, only Solana (SOL) did not record losses. The others, however, registered double-digit devaluations. As a result, the market as a whole lost about $200 billion in market value. At the time of writing this text, the biggest drops were for XRP (17.84%) and Polkadot (15.96%).
Bitcoin Day ended in anticlimax
In addition to taking the market by surprise, the fall apparently cooled the spirits with Bitcoin Day. On Tuesday (7), the BTC started to be legal tender in El Salvador and the fact gained enormous repercussion on social networks.
As reported by CriptoFácil, users around the world joined together to buy R$ 160 worth of BTC as a way to express their support for the decision. At first, it was feared that the attitude could generate an artificial appreciation of the price because of manipulation. In the end, exactly the opposite happened, with the market registering precipitous drops.
It is still unclear what prompted the market to take such a sudden turn, although there is speculation about mass sales by major investors. Others used the maxim of “buy on rumour, sell on fact”, that is, with Ley Bitcoin effectively in effect, investors reduced their positions in BTC.
Even if it’s true, at least one big “whale” took advantage of the fall to buy more BTC: the Salvadoran government. Yes, President Nayib Bukele announced that the country bought another 150 BTC during the downturn. Now, the country accumulates 550 BTC in its national reserves.
Buying the dip 😉
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
In another tweet, Bukele “thanked” the International Monetary Fund (IMF) for causing the BTC to fall. The institution criticized El Salvador for having adopted the BTC as its official currency, but it is still unclear whether the market decline is related to the IMF.
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