When everything indicated that we were in the middle of a big rally for the cryptocurrency market, the set of currencies just crashed. The reasons are various and it is time to explain what has happened.
Just the day that Bitcoin became legal tender in El Salvador, the cryptocurrency has plummeted, which has meant losses for the country of about two million dollars.
This, which may well be anecdotal, is the perfect representation that putting money in crypto can be a lottery in which even countries can be ruined. The danger is there, as are the opportunities.
The point is that the fall of Bitcoin has gone hand in hand with the rest of virtual currencies, what makes this September 8 a black day for holders and investors.
The reasons for the general collapse could well be in El Salvador, or so some experts believe, who explain that the interest of individual investors could skyrocket due to the fact that large institutions jumped on the cryptocurrency bandwagon So what after eight weeks on the rise it became overbought.
And it is that many investors began to put their funds into the fashionable cryptocurrency as soon as it was announced that El Salvador was going to approve payments with said currency, waiting for it to rise and thus be able to sell as soon as the pitch hit.
On the other hand, other teachers of the subject do not think so, downplaying what happened in the country of Nayib Bukele, and They answer that the collapse was due to the goings-on that is always behind, which makes the coins so unstable.
Some say yes, others no, and then we have The third theory, the one that says because Bitcoin is traded so little, it could also have been a big fork making a big sell to have cash, thus disrupting the entire market.
In addition to the crash of Bitcoin, other digital currencies also fell, such as the cases of Ethereum fell more than 11% to $ 3,471, while Dogecoin and Cardano prices plunged 15% and 12% at $ 0.26 and $ 2.5 respectively.