Bloodbath in the Crypto Market – Can Bitcoin Target 42,195? 

Good morning traders,

The BTC/USD closed at $46,778.0, after reaching a high of $52,888.0, and a low of $43,347.0. BTC/USD dropped to its lowest level in one month, below $44,000, amid the latest news on the launch of the Bitcoin law in El Salvador.

The sharp decline in BTC/USD could be attributed to profit-booking by BTC holders on Tuesday, right after El Salvador moved forward with its recognition of the digital currency as legal tender in the country. Investors became cautious, as this move could have significant implications for global adoption.

The massive sell-off in BTC/USD came in during President Bukele’s first El Salvadoran national Bitcoin day. The government offered to give away $30 in BTC to all citizens who decide to download its BTC wallet, Chivo. The wallet app was so much in demand on Tuesday that the platform temporarily broke down, which gave everyone a pretty good impression of the Bitcoin craze in Central America.

BITCOIN

The Bitcoin Day in El Salvador was expected to be very positive for the cryptocurrency, as President Bukele and many international supporters had pledged to buy $30 worth of BTC on Tuesday, to show their support for this bold move by the country. The sudden crash in Bitcoin prices was highly unexpected, and Bukele did not hesitate to blame it on efforts by the IMF and the World Bank.

The International Monetary Fund previously opposed Bukele’s decision to make Bitcoin legal tender, on the grounds of macroeconomic, financial and legal issues. Similarly, the World Bank also refused to help El Salvador implement the Bitcoin Law in the country.

When the prices of BTC/USD turned downwards unexpectedly on Tuesday, Bukele and others accused the IMF and the World Bank of manipulating the price, in order to make his policy initiative seem like a failure in the press. However, some analysts offered a different explanation for the sudden decline in the price of the BTC/USD as a mass liquidation of long positions by many investors, to enter the alt-coin market, which has been taking some big hits lately.

Meanwhile, the Mexican crypto exchange, Bitso, has announced that it will be the core crypto service provider for El Salvador’s official BTC wallet, Chivo. On Tuesday, the firm announced that it would assist in launching a state-supported BTC wallet, alongside companies like Silvergate Bank, Athena Bitcoin and Algorand. Furthermore, the Vice President of the payments giant, VISA, revealed the company’s intentions to integrate crypto assets into its platform, for both payments and a store of value. Fernando Teles, the CEO of VISA, Brazil, introduced the concept of adopting tokenized payments and an API designed to bridge the gap between traditional financial institutions and crypto services.

In simple words, VISA reportedly aims to integrate Bitcoin and other crypto payments in Brazil, but not even this news could limit the decline in the prices of BTC/USD on Tuesday.

Bitcoin (BTC/USD) – Technical Outlook

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