September 7th is a big day for El Salvador, from which Bitcoin, along with the dollar, has become the country's legal tender. As a result, El Salvador became the first country in the world to legalize bitcoin, which many believe will further push up the price of bitcoin.
But what happened on Tuesday was another massacre of bitcoin and cryptocurrency, as people have seen before. Within hours, the price of Bitcoin plummeted by an incredible $10, 000.
The price of Bitcoin, which has hovered around $50, 000 over the past few days, got off to a better-than-expected start on Tuesday, reaching $53000 in morning trading, a level not seen since the crash triggered by Mr Musk's tweets in mid-May.
But by 4 a.m. eastern time on Tuesday, the price of Bitcoin had begun to fall, falling again to $50, 000. The real crash took place shortly after 10:00 et. Within two hours, Bitcoin fell more than 15 per cent from $50700 to $42900. In total, Bitcoin fell nearly 20%, or just over $10, 000, in the early hours of Tuesday.
Needless to say, the entire cryptocurrency market has also been dragged down by bitcoin.
Of course, enthusiastic supporters of cryptocurrencies will still tell you that the high volatility we saw on the big day in El Salvador is a hallmark of cryptocurrency transactions. We often see huge price fluctuations, and they are two-way.
Unlike previous crashes in bitcoin prices this year, no obvious cause has been found. Musk did not post a mockery of Bitcoin, nor did he support Mimcoins such as Dog Coin. Nor have national regulators taken any new action against cryptocurrencies.
The whales won.
A few days ago, there was a wave of support for El Salvador Bitcoin Day on social media. Some have called on all bitcoin enthusiasts to buy $30 worth of bitcoin on Sept. 7 as a gesture to support El Salvador. A similar plot was staged in early February, when supporters of XRP were organized online to resemble game stations.The way stocks drive up the price of the Swiss currency. But instead of rising as planned, the price of the Swiss currency plummeted 55% on the day when everyone should have bought it. Holders of Ruibo coins who are well versed in encryption may have sold when prices were pushed up in early February, especially those known as "giant whales".
On Tuesday, Bitcoin "giant whales" may have done the same thing compared to the price of bitcoin, partially ruining the "big day" in El Salvador. They may have taken advantage of the news from El Salvador to sell and then want to buy again at a lower price. Sure enough, Bitcoin has recovered some of its lost ground, and its price is now around $47000, down about 11% from 24 hours ago.
The temporary losers are those who bought at high levels on Tuesday morning, and those who took overleveraged positions on exchanges. As for El Salvador, it bought 400 bitcoins late Monday and another 150 after a collapse on Tuesday.