Cardano founder: The future belongs to Bitcoin and Co.

Bitcoin and also other cryptocurrencies have briefly collapsed massively. Here’s the background.

Today, September 7, at around 4 p.m., the bitcoin price plummeted, without much notice, by nearly 19 percent. It thus fell from the day’s high of around $52,300 to briefly around $43,000 (depending on the exchange, there are greater differences in the lows). The downward slide towards the south lasted one hour. In the meantime, the Bitcoin price has recovered and is at the time of writing at 46,800 US dollars – a minus of about 10 percent.

Cardano founder: The future belongs to Bitcoin and Co.Cardano founder: The future belongs to Bitcoin and Co.Cardano founder: The future belongs to Bitcoin and Co.Screenshot via Tradingview

What caused the bitcoin slump?

The mood was upbeat in light of the bitcoin launch in El Salvador. In fact, a so-called pump was even expected for tonight at 11 p.m. German time. Namely, then, when the citizens of El Salvador will receive 30 US dollars in BTC, Bitcoin supporters around the world are supposed to acquire BTC in solidarity as well.

Instead, a crash occurred for the time being, which does not reveal any fundamental cause. Rather, at this point in time, it can be assumed that it must have been a case of larger order orders from so-called Bitcoin whales. These sell orders have caused Bitcoin to slip below the important $50,000 mark, triggering further orders that have 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 dump Bitcoin the day El Salvador makes it legal tender,” his tweet read.

Lucky for El Salvador

For El Salvador’s president, Nayib Bukele, that’s lucky. After all, the country was able to take advantage of the short-lived discount to stock up on bitcoin on the cheap. As such, he tweeted that he used the dip to purchase another 150 BTC. In this sense, the short-lived crash can be judged as a politically positive event that helps the small and poor country to get cheap new national currency.

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In the meantime, Bitcoin seems to have regained its footing, even if volatility is expected to remain high for the time being.