Bitcoin "turned positive" big day "giant whales" played to pull up shipments

September 7 is a big day for El Salvador, and from this day on, Bitcoin, along with the US dollar, has become the country's legal tender. El Salvador thus became the first country in the world to legalize Bitcoin, which many believe will push up the price of Bitcoin even further.

But what happened on Tuesday was another massacre of bitcoin and cryptocurrencies, as people have seen before. Within a few hours, the price of Bitcoin had plummeted by an incredible $10,000.

Bitcoin's price has hovered around $50,000 over the past few days, and Tuesday's start was better than expected, with bitcoin reaching $53,000 at one point in early trading, a height not seen since the crash triggered by Musk's tweets in mid-May.

But by 4 a.m. EST on Tuesday, the price of bitcoin had already begun to fall, falling again to $50,000. The real crash occurred shortly after 10 a.m. ET. In two hours, Bitcoin fell all the way from $50,700 to $42,900, a drop of more than 15 percent. In the early hours of Tuesday morning, Bitcoin fell by nearly 20 percent, or just over $10,000.

Needless to say, the entire cryptocurrency market was also dragged down by Bitcoin.

Of course, the fervent proponents of cryptocurrencies will still tell you that the high volatility we see on the big day in El Salvador is an iconic feature of cryptocurrency trading. We often see huge price fluctuations, and it's a two-way street.

Unlike the previous bitcoin price plunges that have occurred this year, no obvious cause of this plunge has been identified. Musk neither posted a mockery of Bitcoin nor supported Mimcoin like Dogecoin. Nor have national regulators taken any new action on cryptocurrencies.

The "whales" won

A few days ago, there was a wave of support for El Salvador Bitcoin Day on social media. Some have called on all Bitcoin enthusiasts to buy $30 worth of bitcoin on Sept. 7 as a gesture to support El Salvador. A similar plot unfolded in early February, when supporters of Ripple (XRP) organized themselves online to raise the price of Ripple in a manner similar to a game station stock. But instead of rising as planned, Ripple plunged 55 percent on the day everyone should have bought. Crypto-savvy Ripple holders may have sold when the price was pulled higher in early February, especially those known as the "giant whales."

On Tuesday, the Bitcoin "whales" may have done the same thing about the Bitcoin price, partially ruining El Salvador's "big day." They may have taken advantage of the news from El Salvador to sell and then want to buy again at a lower price. Sure enough, Bitcoin has recovered some of its lost ground, and is currently priced around $47,000, down about 11 percent from 24 hours ago.

Temporary losers are those who bought high on Tuesday morning, as well as those who held overly leveraged positions on exchanges. As for El Salvador, the country bought 400 bitcoins late Monday and another 150 after Tuesday's plunge.

This article originated from the Financial Circle Network