Bitcoin and other crypto currencies have collapsed massively for a short time. That is the background.
Today, September 7th, at around 4 p.m., the Bitcoin price collapsed by almost 19 percent without any major announcement. It fell from the daily high of around 52,300 US dollars to around 43,000 US dollars for a short time (depending on the stock exchange, there are larger differences in the lows). The descent to the south took an hour. In the meantime, the Bitcoin price is recovering and is at 46,800 US dollars at the time of writing – a decrease of around 10 percent.
How did the Bitcoin slump come about?
The mood was good with the introduction of Bitcoin in El Salvador. Rather, a so-called pump was even expected for this evening at 11 p.m. German time. Then, when the citizens of El Salvador receive 30 US dollars in BTC, Bitcoin proponents around the world should also acquire BTC in solidarity.
Instead, there was a crash that did not reveal any fundamental cause. Rather, it can be assumed at the present time that it must have been larger orders from so-called Bitcoin whales. These sell orders caused Bitcoin to slide below the important mark of US $ 50,000, triggering further orders that caused Bitcoin to slide.
Trader and analyst Scott Melker, known as “The Wolf of All Streets,” blamed large volume traders.
“Leave it to the whales to sell Bitcoin the day El Salvador makes it legal tender,” it says Tweet.
Lucky for El Salvador
Lucky for El Salvador’s President Nayib Bukele. Finally, the country was able to use the short-term discount to stock up on Bitcoin cheaply. So tweeted that he used the dip to buy another 150 BTC. In this sense, the short-term crash can be assessed as a politically positive event that helps the small and poor country to get the new national currency cheaply.
Bitcoin now seems to be recovering, even if high volatility is to be expected for the time being.