After declining to about $43,000 on September 7, 2021, Bitcoin (BTC) is trying to regain the lost ground. The steep declined happened on the day Bitcoin, alongside greenback, became the legal tender of El Salvador.
While writing this article, Bitcoin was trading at $46,633, down 8.80% in the last 24 hours. The numero uno crypto commands a market cap of $877 billion and market dominance of 40.70%. El Salvador’s Bitcoin deployment did not go as well as planned.
Its digital wallet mechanism, Chivo, collapsed shortly after it went online, owing to installation issues with many people. As a consequence, the government was forced to shut down the whole system. The government and its programmers are now working on that.
El Salvador President Nayib Bukele recently tweeted, “We will capitalize the early morning to make changes to @chivowallet, enhance the customer experience, and address any issues that arose throughout the day. We will turn off the network from 1 a.m. to 6 a.m. to perform these changes. Our personnel are prepared. We are hoping for a much better day tomorrow.” The Chivo mobile wallet is now only accessible on the Google Play Store, which is the most popular in El Salvador.
Nevertheless, this is pretty much limited to all variants of the Samsung Galaxy S20 and S21. Bukele stated that it will eventually be able for more Android devices on the market.
“The #Bitcoin process in El Salvador has become a learning opportunity. Every stride toward the future will be like this, and we will not be able to accomplish everything within a day or a month,” stated Bukele.
It appears the discount is ending 🥲
Thanks for the dip @IMFNews. We saved a million in printed paper.
El Salvador now holds 550 bitcoin.#BitcoinDay #BTC 🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Mientras tanto, pueden ayudarnos contándonos los problemas que tuvieron, llenando este formulario: https://t.co/LR0E1dzAbm
Esto nos ayudará a resolver su problema en específico y a mejorar la experiencia de todos.
El sitio quedará abierto para futuras asistencias técnicas.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 8, 2021
Salvador’s Bitcoin uptake and network meltdown problems, however, are not the primary causes of this current BTC price adjustment. As we’re seeing, the entire cryptocurrency market has dropped well over 13% in the past 24 hours, mopping up well over $200 billion.
Bitcoin and the altcoins sector have risen at an incomprehensible rate over the past week. As a result, any market downturn at this time isn’t surprising as investors prepare to book profits. Here are some other two potential explanations for the current market downturn.
1. JPMorgan advised investors one day before Tuesday’s collapse not to purchase cryptocurrency at this time. According to JPMorgan researchers, retail traders have been inflating prices even before any core technological improvements. This was adequate to generate a negative mood, resulting in a significant sell-off.
2. The cryptocurrency market has been rising in a single direction since mid-July, with no significant pullback. This prolonged rise was certainly frightening, with several leading cryptocurrencies rising 75% to 100% in a month. The market is reacting strongly as investors join the offload game.
