[ad_1]
As the technical problems of its digital wallet were later resolved, the launch of the cryptocurrency in El Salvador did not start smoothly.
As El Salvador was in trouble for launching its largest cryptocurrency as legal tender, Bitcoin continued to fall after Wednesday’s plunge.
As of 11 a.m. Singapore time, the trading price of the virtual currency was approximately US$47,100, which had fallen by 17% the day before, and then recovered some of its losses. The drop also swept tokens such as Ethereum and Dogecoin, as well as the Bloomberg Galaxy Crypto Index.
“Social media platforms are very cautious over the weekend, believing that there may be a plunge after the important day in El Salvador,” Edward Moya, senior market analyst at Oanda Corp., wrote in a report. He said that some investors may have bought in anticipation that the country will implement its Bitcoin law on September 7 and then “sell the facts” instead.
The experiment in El Salvador with Bitcoin—the biggest test of the real-world utility of the token—had not started well because of a technical failure in the official digital wallet, which appeared to be resolved. President Nayib Bukele (Nayib Bukele) said on Twitter that the country now holds 550 bitcoins after buying bitcoins when prices fell.
Tuesday’s sell-off was the most important breakthrough in Bitcoin’s nearly 75% rally since the end of July. According to data from the tracker CoinGecko, the overall market value of cryptocurrencies has fallen by approximately US$280 billion in the past 24 hours.
According to Bybt.com, approximately $3.7 billion in cryptocurrency liquidation occurred during the same period. This happens when a leveraged position is closed by an exchange because it fails to meet the margin requirements.
Mike Novogratz, CEO of Galaxy Digital Holdings and a long-term cryptocurrency billionaire, said that the digital currency market has performed strongly in the past eight weeks and has become overbought. He said that with the support of large institutions joining the cryptocurrency wagon, the interest of individual investors has surged.
Oanda’s Moya believes that Bitcoin’s “fundamentals remain the same because the price forms a new trading range between US$46,000 and US$53,000.”
Although the launch of El Salvador may be the proximate cause of Bitcoin’s volatility, other variables may also play a role in the turbulent cryptocurrency sector. In particular, the prospect of the Federal Reserve’s reduction of stimulus measures poses a challenge to speculative assets such as digital tokens.
Chris Weston, director of research at Pepperstone Financial Pty, wrote in a report: “Whether it may also be the beneficiaries of liquidity-including cryptocurrencies-may feel that major central banks will make more standardized policies in the future.”
Asian stocks related to cryptocurrencies, such as Japan’s Monex Group, have fallen back. North American counterparts such as Riot Blockchain Inc., Marathon Digital Holdings Inc., Coinbase Global Inc. and MicroStrategy Inc. also fell.
[ad_2]
Source link