Good news for cryptocurrencies and ... huge drops

If cryptocurrency investors have recently taken long positions and hoped for quick profits, they may be severely disappointed. A dozen or even several dozen percent of the decrease is certainly a cold shower for those who believed in the power good information i Reddit.

The first good news from the blockchain world arrived on Monday. El Salvador confirmed that it recognized Bitcoin for legal and official tender. The country's authorities stressed in a press release that this would allow all Salvadorans to have access to banking services. According to government estimates, the country's citizens will save $ 400 million annually in fees on remittances sent to the country from abroad. The multitude of inhabitants of poor Salvador work abroad and regularly provide financial support to their relatives who still live in the homeland struggling with the never-ending crisis.

The Salvadoran government, however, not only says, but also does: it has been announced that it has already purchased 200 Bitcoins. He paid about $ 21 million for them. However, residents are not convinced by this idea because they are very attached to American dollars, which will still remain a tender and by many Salvadorans are considered the only "Hard currency". 

Reddit didn't help this time

The Salvadoran government has announced that every resident of the country will get the equivalent of USD 30 in BTC so that they can learn about the new currency and learn to use it without fear. 

Support was also offered by members at Reddit forum investors who have, among others, successful action with a price increase GameStopwhose course the big players wanted to "drown". Reddit was invented this time that everyone would buy BTC - for a symbolic $ 30 - to support the Salvadoran community and show that it is a worthy, legal and safe means of payment. 

Many people expected that this could trigger a jump in the course. Once again, however, it turned out that the belief that the cryptocurrency market is a niche that can be easily manipulated may have existed many years ago, but not now. On Tuesday, 07.09.2021/24/52.920, cryptocurrency rates collapsed. Large sell orders pushed BTC down from $ 42.843 to $ 20, or almost XNUMX%, within XNUMX hours. It was similar on virtually all other major cryptocurrencies.

BTC / USDT Chart, H4. Source: Binance

Who Cared About the Fall in Cryptocurrency Prices?

The drops in prices of virtually all cryptocurrencies coincided with worse sentiment also on traditional exchanges. Analysts - as always in such cases - noted that it caused it "Greater risk aversion". But is this the only reason? 

There were soon suspicions on the market that this was a classic "alloy cleaning", i.e. a deliberate undercutting of the market by large players to buy more tokens at lower prices. The supply of many of them is negligible. The data show that in some cases up to 30% of all cryptocurrencies are frozen on wallets or stacked (that is, in a way, deposited). So you can't buy more - especially less popular tokens - without raising their price significantly.

Such large changes in one day are nothing unusual in the cryptocurrency market. However, when prices fluctuate in the upside, few people make a drama out of it, but with declines there are always comments prophesying the decline of cryptocurrencies, market collapse and other apocalyptic titles. Information has already been released that transactions have been launched thanks to the drops Stop Loss on long positions on Bitcoin worth 2-3 billion USD.

Meanwhile, El Salvador has just announced that, using the promotional price, it has just bought 150 Bitcoins. Case?