The good old bitcoin has returned

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For a month and a half, the main cryptocurrency grew almost recoilless. However, there were no good fundamental reasons for this. Also, many experts drew attention to the fact that the volatility of BTC has sharply decreased. If earlier bitcoin could easily and overcome the distance of 5-10 thousand dollars per day, then in the last month and a half, it was held in a quiet and calm mode - 1.5-2.5 thousand dollars. Such an uncharacteristic movement raised many questions, as well as the fact that when the quotes were located at around $ 30,000, many experts expected it to fall further. But instead, the quotes of the main cryptocurrency soared up to $ 53,000. They have risen in price by 80%. From our point of view, it all looked very strange. But finally, yesterday, the good old bitcoin returned, which can pass up to 25% of its value in a day. The quotes of the "bitcoin" collapsed yesterday after El Salvador officially recognized bitcoin as a national means of payment.

As soon as this happened, problems immediately began. Mass protests of Salvadorans have begun, who do not want cryptocurrency to be an official means of payment, as well as wages, pensions, and social benefits to be tied to it. A country with huge economic and financial problems cannot afford to experiment with cryptocurrencies, exposing its citizens to even greater risk. Nayib Bukele (President of El Salvador) also said that the country has already purchased its first 200 bitcoins and promised to buy more. Nevertheless, Bukele's initiative has faced massive criticism from the opposition. Although Nayib Bukele claims that the country will be able to save up to $ 400 million a year, which is spent on cross-border transfers made by citizens of El Salvador, the opposition accuses him of not even explaining to the population of the country how the new system should work. However, McDonald's and Starbucks have already started accepting payments in bitcoins, and each Salvadoran received a $ 30 bonus in bitcoins. But economists believe that the country's government should not have passed a law according to which all businesses must accept bitcoins as payment.

Thus, as they say, "the experiment is unsuccessful." At least, so far, it looks like it. The quotes of the "bitcoin" fell by $ 10,000 yesterday. However, today, they have recovered by $ 4,000. However, this collapse may serve as a signal for new sales of the main cryptocurrency. Recall that many bankers and economists are perplexed about the reasons for the growth of BTC in recent months and warn their clients about the overbought "digital gold." We, in turn, remind you that if the majority of market participants buy bitcoin, it will become more expensive. But, fortunately, in most cases, there are still specific reasons for this. Now there are no reasons for the new growth of the "bitcoin." If the quotes at the end of today manage to stay below the level of $ 46,600, the fall may continue with the goals of $ 43,852 and $ 40,746.

The material has been provided by InstaForex Company - www.instaforex.com

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