Bitcoin Forum

Bitcoin entered this week with the most glamorous mood since April, with a market price of $52,500, and on the 7th of September 2021, which is Tuesday, the Bitcoin market crashed to $46k within a second.

On 7th of September a day, Bitcoin became a legal tender of a country 🇸🇻 El Salvador.

Who is responsible for the crash is it the whales or recent buyers.

Could be the IMF in cahoots with large institutions to short to punish El Salvador. Could be the El Salvadorians selling when they got their free $30 in bitcoin. Could be whales using the day to fool people & take advantage to dump the market. Lots of longs were wiped out, basically it could be anything. I do think there were several large players involved though.

I doubt there's a reliable way for anyone to confirm one way or the other.  You can invite speculation about it, but you're not likely to get a definitive answer.  I'd like to say it's probably a combination of many factors, but, given what happened with a certain prominent businessman on Twitter not long ago (that we had far too many topics about), we can't really rule out the possibility of market manipulation by a small minority either.  Anything is possible.

Thats the ironry of crypto market, nobody can say with authority who is behind recent blood shed. Likewise no one can tell the reason why BTC is flying so high. BTC and crypto market is based on speculations mostly and one need to follow the price path closely for safe entry and exit. With time I hope crypto market will matured and we have definite reasons for rise and fall of market.

Didn’t El Salvador themselves sold some bitcoins after the launch of the said cryptocurrency as its legal tender? Either that or some other entities outside of El Salvador just decided to sell most of their holdings during those times in order to create confusion and mass panic on those whom vested their interest on the progress of what’s happening in El Salvador.

It’s not only bitcoin that has been affected by the recent decline, so it’s probably just whales waiting for the opportune moment to dump what they have and re-buy once the panic has been instilled on the market.

Was having similar thoughts. Like, we'll show you how making BTC legal tender is not good for you. FUD only.

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Could be the El Salvadorians selling when they got their free $30 in bitcoin. Could be whales using the day to fool people & take advantage to dump the market.
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As far as the flash sale has been, there's a low chance that the people of El Salvador selling their $30 worth of BTC caused it. It seemed really orchestrated and it leads me to believe that this was one/several whales doing it. As for why they decided to do it (probably to do with El Salvador) other than that your guess is as gd as mine.

By it's very nature Bitcoin was designed to be mostly anonymous, this has it's benefits but makes getting the sort of answer your after much harder to analyse. There are always a few whales out there who want to maximise profits, so they might have natural sell off automation when certain thresholds are reached - creating a sort of perpetual spiral down. There are so many financial institutions in the crypto game now and they're likely using the many dirty tricks that were previously restricted in places like the stock market and they have some hard core technology to stay ahead of regular users.

Once a whale or an exchange wanted to make a profit, the funds fled，It's just the end of a cycle. I don't think it has much to do with El Salvador. Altcoins are flying wild. It's time to cut back and the funds will return to the mainstream. Otherwise, the rise of Bitcoin will be very pressure.No bad news, no reason, no explanation, no responsibility.

It was a huge dump done so quickly. I was totally caught by surprise upon checking my portfolio. It suddenly decreased by the thousands in just a few hours. I am also interested to know what caused that. I don't think it was caused by small buyers and Bitcoin owners. It was so sudden and big there must have been a whale who made a huge sell-off. But we will never know who it was. We can only guess which is pointless really. The good thing now is that Bitcoin is starting to recover already.

I also thought about it. We were all looking forward to the seventh of September to see how bitcoin would behave after it was officially recognized as the national currency of El Salvador. And it was on this day that bitcoin fell from $ 52,000 to $ 46,000. If you think logically, then such a drop in the price of bitcoin cannot be associated with the events in El Salvador. On this day, it is unlikely that significant payments were made in bitcoin with their subsequent sale, for example, for dollars.
Most likely, it was some group that threw out a significant amount of bitcoins for sale that day, because over the past week, bitcoin has grown decently in price. The only question remains: was September 7 by chance the date for this, or was it deliberately chosen to provoke panic among the inhabitants of El Salvador?

Ain't it funny how we always look for things/entities to blame when bitcoin drops, whereas we mostly just totally accept it and point to "AdOpTiOn!!!1!" when the movement is a spike upward?

So the El Salvador announcement was public. People were going to get 30$ each. Crypto Twitter was starting to get awash with pictures of people paying for their burgers and coffees using LN (Which did happen, btw). All of this was supposed to be great for pumpamentals which meant a lot of traders, probably new ones, were sitting on leveraged long positions waiting for the pump.

The central exchanges and their old friends knew this beforehand. Weren't there allegations against a major centralized exchanges about doing this exact kind of thing? Who benefits when all those long positions get liquidated? That flash crash really was sudden and unexpected amidst the news. It'll be interesting to see what happens when other countries start taking President Nayib's lead.

I personally find the accusations that there was some sort of whale manipulation a bit ridiculous.

This is not even a crash as far as I'm concerned. A 10% adjustment is completely normal when it comes to the day-to-day fluctuations of the bitcoin markets.

We can likely attribute this to just normal market fluctuation, with the unfortunate circumstance that a certain exchange also went offline for a brief moment during that time. Calling everything manipulation is a futile exercise.

If a sudden pump and dumped happen in the altcoin market is understandable as most altcoin is just pumped and dump coins, but what happens when the general suddenly crash down losing almost 10% within seconds and failed to recover after a while I think some whales are buying in the deep as that is their original plan.

The main reason for the Bitcoin crash was that after the night of September 7 was the most important day in the history of Bitcoin, the most fundamental bullish moment unfolded, and El Salvador officially became the legal tender of El Salvador. However, the price of Bitcoin did not respond as expected. On the contrary, the market responded by selling. Whether this means that the decline of Bitcoin is a phenomenon of "buying rumors and selling facts" is worthy of our deep consideration.

I don't know it's only me or no that feel like the elsavador news is nothing linked to previous bitcoin crash because that was a good news but the price decline so bad.
People are saying because of the media inform those elsavador news and bitcoin price crash at the same time and people are starting to assuming that these 2 events has a link.
But it's okay for me because we haven't seen price drops recently from bitcoin for like 2 months which is really not common, so the previous price crash is just a normal events happened in crypto and give us a chance to buy more at lower price

Why don't people think Bitcoin's chart is at the strong resistance of $53000.
Another thing is that September is the month when the average price of Bitcoin decreases compared to other months (if averaging the years from 2013 to the present). So, accept the market and don't try to blame it.
Also in other news is that the SEC is suing Coinbase without giving a clear reason.

https://i.ibb.co/j6Sdbcy/received-233003425424204.jpg

Bitcoin is only down 4.6% over the last 7 days. There was a quick drop of the price, but it's a small event that doesn't impact the price much overall. It's a volatile currency, and to me, it looks like a fairly minor fluctuation. Does there have to be a reason to explain this movement? It went up a little, and then the price faced a correction is what I see here. Major media outlets are writing about it as if something devastating happened, but I think they're overhyping a very insignificant price movement, only contributing to the spread of further FUD.

I guess the sale off was huge it has taken too long to recover bitcoin still relies on around the 47000 regions for over 48 hours of the crash of 10%. This indeed indicates bull resistance and it will take some days to recover.

Personally I might likened the sudden market crash that occurred on 07/09 to airdropping of $30 BTC to almost 4.5 million El Salvadorans, imagine half or more of the population selling some bit of their Bitcoin just for a trial and testing of LN of their wallet, definitely that will have a significant impact on the price of Bitcoin and could likely been the fundamental behind the crash, thus next time we should be at alacrity when there is going to be another airdropping and adoption of Bitcoin by another country, although the impact of the crash is minimal however in the long run its a big plus for the growth of Bitcoin.

I think this may be partly correct, but on that day the El Salvador government’s wallet was down so if the network is down how possible is it that the activities from the citizen’s wallet are responsible for this crash.

It has a point but.

The whole market isn't just relying on El Salvador's new government wallet. There are other possibilities that have happened that affected the entire market and why it became down.