Key Takeaways
- Bitcoin prices fell bellow $43,000 as El Salvador made BTC a legal tender
- The “Bitcoin Day” mass purchase did nothing to stop the price correction
- On the Seychelles-based cryptocurrency exchange Huobi, the price of BTCUSDT dropped bellow $40,000
YEREVAN (CoinChapter.com) — As El Salvador became the first country to adopt Bitcoin (BTC) as legal tender, the world’s most popular token experienced a volatile day.
BTC fell below $43,000 on September 7 after touching the $53,000 mark as trading continued on Tuesday.
While CoinDesk data showed BTC price dropped to $42,921.27, on the Huobi exchange, it went even lower.
Bitcoin ended the trading session having shelled off a little short of $5000, a massive 9.60% dip from its opening price.
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El Salvador “buys the dip”
As the Central American nation became the first country to bring BTC into the mainstream, fans of the token cheered. After all, this signals a new era for cryptocurrencies.
However, unsuspecting enthusiasts scratched their heads when BTC went into correction mode.
For El Salvador, it caused no panic at all. The country had already bought 200 bitcoins worth just over $10.36 million. It purchased another 200 BTC on Monday.
As the price of BTC started to nosedive, President Nayib Bukele tackled it with classic crypto jargon.
“Buying the dip 150 new coins added.”, he tweeted, indicating the country added another 150 BTC in its kitty on Tuesday. This brings El Salvador’s total to 550 bitcoins.
The President also took a jibe at the IMF by thanking them for the dip, saying the country “saved a million in printed paper”
In July, the IMF published “Cryptoassets as National Currency? A Step Too Far,” criticizing the adoption of crypto assets as a national currency.
As announced in June, the Government will use the Chivo e-wallet, preloaded with US$30 of Bitcoin to distribute to everyone who downloads it. Only hours after El Salvador made the popular token legal tender, the Government disabled the Chivo wallet as citizens rushed to use the coveted crypto, causing complications.
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En-mass Bitcoin buy doesn’t help
A growing number of users on social media platforms, including Twitter and Reddit, declared September 7 as “Bitcoin Day”. As an attempt to support El Salvador’s plan to make the token a legal tender, users called on people to buy at least $30 in BTC.
As the campaign spread, the oldest cryptocurrency should have experienced a boost. Instead of taking off, BTC nosedived.
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Bitcoin drops below $40,00 on Huobi
Bitcoin’s correction on Tuesday triggered mass liquidations in the market.
While the information provided by CoinDesk showed BTC’s 24 hours low just below $43,000, the Huobi exchange on TradingView painted a different picture.
According to the graph, BTCUSDT dropped to as low as $39,818.18 on Huobi, the lowest point of any major exchange.
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Crypto supporters undeterred
Despite the massive correction in the BTC price, crypto enthusiasts remained undeterred. After all, on its way to an ATH of above $64,000, the token had experienced a number of corrections.
While sceptics took the opportunity to laugh at crypto advocates for the poor performance of BTC, others pointed out why this was just a normal day in trade.
Talking about the normalcy of such corrections, analyst Michael Van de Poppe shrugged the panic created by the price drop.
“$46,700 to $47,000 is a remarkable level for me”, he said, indicating that despite the dip, BTC is still creating higher lows and is, therefore, on an uptrend.
