Bitcoin flash crashes to AUD$58k a day after its formal adoption in El Salvador
BTC's 30-day gains currently lay just under the 7% mark
- Despite yesterday's dip, the total market cap of the crypto sector continues to hover around the AUD$3 trillion range (approximately).
- El Salvador President Nayib Bukele revealed that his country added more BTC to its reserves when the asset crashed to its local bottom of AUD$58k yesterday.
- The Central American nation now has a sizable sum of 550 BTC in its crypto coffers.
Nobody could have foreseen the series of events that unfolded over the last 24 hours as Bitcoin recorded a daily loss of over AUD$11,000, leaving investors across the globe completely confounded. In fact, yesterday was one of the most volatility-ridden days for the crypto market as a whole since the China mining ban earlier this year in April. That said, BTC seems to be in recovery mode once again, trading at a price point of around AUD$63,328.
Providing his take on the entire episode, trader and analyst Scott Melker, better recognised by his Twitter pseudonym "The Wolf of All Streets," said that the entire episode can be attributed to large-volume traders who wanted to cash in on the ongoing market boom, adding: "Leave it to whales to dump Bitcoin on the day that El Salvador makes it legal tender. Real volume on the selling as well."
Furthermore, it should be noted that right after the El Salvadoran government sanctioned the legalisation of BTC within its borders – making the Central American nation the first to have mainstream retail outlets like McDonald's accepting crypto – the price of Bitcoin shot up to a 120-day high of AUD$71,700. This is why this most recent dip has had a lot of people asking conspiracy-themed questions as to whether the World Bank and International Monetary Fund (IMF) may have had something to do with this development since both organisations have criticised El Salvador president Nayib Bukele vehemently for his decision to move away from the central banking system that is in place today across the globe.
El Salvador buys the dip
Despite all of the ongoing volatility, President Bukele seemed to remain totally unfazed, even reaffirming his commitment to a decentralised economic future by lapping up another 150 BTC during the depths of the selloff. In all, the country has a total of 550 Bitcoin (approximately AUD$34.5 million) in its coffers.
Buying the dip 😉
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Lastly, in under 10 minutes of sending out the above-linked tweet, President Bukele released another message claiming that the "discount" may be ending soon and that there may not be another opportunity like this for HODLers again anytime. He also thanked the IMF for helping his country "save a million in printed paper" on his government's Bitcoin purchase, thus adding more fuel to the aforementioned conspiracy.
What lies in Bitcoin's future?
After reaching all-time highs in May, Bitcoin was tested immensely when it plummeted all the way down to the US$29k mark. That said, over the last 30-day span, the crypto market as a whole has forged a remarkable recovery, with BTC and ETH reclaiming the US$50k and US$4k psychological thresholds respectively. Therefore, the coming few days will be really interesting to watch.
Disclosure: The author owns a range of cryptocurrencies at the time of writing