Bitcoin unpredictable during recent times.
The crypto market crash that happened on May 12, has had devastating affects on all the cryptocurrencies around the world. Not one currency was spared from the outburst of the market. Bitcoin being the most popular, most valued cryptocurrency has also had to meet its fate. Bitcoin dropped by at least 50% and also started trading at below $22,000. The unpredictable nature of the market has surely made bitcoin an unpredictable investment for the investors of cryptocurrency.
Bitcoin’s fall has not only impacted the big players of the market such as Coinbase, Crypto.com and BlockFi, but has affected the whole crypto ecosystem to a large extent. El Salvador’s decision to make bitcoin the legal tender of the nation is also being criticized by crypto experts to a large extent.
Criticism by crypto experts.
The trading value of bitcoin is currently at $20,141 which is the lowest value for bitcoin since December 2020. When Nayib Bukele went ahead to announce bitcoin as the legal tender for El Salvador, many people around the world criticized him for his decision saying that the decision is not accurate considering the volatile nature of the market. Many people have voiced concerns about El Salvador’s fiscal health due to a large bitcoin position on the country’s balance sheet.
El Salvador’s president on bitcoin investments.
The president of EL Salvador, Nayib Bukele, has made a remark about the bitcoin investments and heavy sell off of the cryptocurrency. Bukele went on to tweet “I see many people are worried and anxious about the bitcoin market price.”
Bukele went ahead and advised the people who were worried about the current market situation that, “Stop looking at the bitcoin graph and enjoy your life.” He added that, if you have invested in bitcoin, then your investment is safe and secure. He also claimed that, once the bear phase of the market is done, the prices of bitcoin will start rising again.
On asking about the El Salvador’s financial position, Salvadorian finance minister, Alejandro Zelaya dismissed the concerns last week, stating that the fiscal risk is extremely minimal. He assured that the fiscal position of the country is not affected by the steep fall in the prices of bitcoin.
Writer’s report:
It is believable that bitcoin is dropping at a rapid pace in the market and is a worrying factor if you are a big investor of the cryptocurrency. But the statements made by El Salvador’s president surely gives us a hope that may be the end of bearish market will enable the prices of the bitcoins to restore back and rise against the wall one more time.
