7 experts analyze bitcoin price fall El Salvador decision can influence the future of cryptocurrencies as Bitcoin has taken all the possible headlines after plummeting more than 40% in just a few days from its historical highs: the cryptocurrency came to trade for about 52,000 euros (62,000 dollars) while this Thursday it barely exceeded 30,000 euros (about 36,600 dollars). Regulatory pressures from countries like China or the removal of Tesla's token as a means of payment have served as a perfect excuse for many investors to decide to capitalize on profits.

But now other bullish forces have appeared on the asset. The most notorious, El Salvador's acceptance of bitcoin as the official currency, as it does with the US dollar.

Of course, all this has generated (even) more questions.

7 experts analyze bitcoin price fall El Salvador decision

For this reason, the source has consulted 7 experts in cryptoassets to try to decipher how far bitcoin can fall and, on the other hand, how it can affect what happened with the Central American country to the future of cryptocurrencies in the long term.

Javier Molina, spokesman for eToro, assures that technically the support of the $ 30,000 could work within a correction count following the previous momentum. "However, and applying Elliott waves, the possibility would be open to experiencing new descents that would lead to levels of 20,000," he says.

Of course, he believes that this situation would be invalidated if the 42,000 dollars were broken upwards and the scenario would pose a possible return to the maximum zone.

7 experts analyze bitcoin price fall El Salvador decision: According to Herminio Fernández, founder of Eurocoinpay, whales have had time to accumulate all the bitcoins they needed and with the shadow of regulation has caused a panic in the cryptocurrency environment. "With this scheme I think that you can still reach 25,000 or 20,000 dollars, and then start a new escalation," he says.

For his part, Ismael Santiago, professor and doctor in finance at the University of Seville and CEO of Olivachain I+D+I, believes that strong hands like Ark Invest are in the strong support of the 30,000 dollars, which for the moment has managed to maintain.

"I consider that bitcoin is very strong at this level, however, if a succession of negative news about bitcoin is concatenated or continue with the harassment and overthrow by the world monetary authorities, discrediting the main cryptocurrency, it is possible that they end up tearing down the ‘Thermopylae’ of bitcoin, which are the level 30,000 dollars a unit, and can reach the fall to 20,000 dollars a unit,” he argues.

7 experts analyze bitcoin price fall El Salvador decision

” A correction like the current one of around 50% from the maximum price reached in April is not something rare and it would not be if it were higher, " adds Javier Castro, Business Controller of Bitnovo.

In this sense, it is also worth taking a look at the 3 most outstanding drops of bitcoin, which occurred in 2013, 2016 and 2018 when the decline reached an average of 84%.

” We are in margins where bitcoin could lose its value even more, although for the moment the resistance is around $ 33,000 and could possibly be kept in these limits for several months, " says Raúl López, head of Coinmotion in Spain. "Maybe the market is waiting for a sharp rise ahead of the last quarter of 2021,” he adds.

7 experts analyze bitcoin price fall El Salvador decision; For Alejandro Zala, head of Bitpanda in Spain, in any case, it is important for investors to remember that when they invest in emerging assets, such as bitcoin, they must have a long-term vision and not be influenced by these fluctuations in the market. "What I can confirm is that we haven't seen bitcoin highs yet,” he says.

” It is difficult to predict how far the fall can go and how pronounced the rebound will be when it occurs, something that will undoubtedly occur, " sums up Andrés Garrido, professor of the Blockchain and Financial Innovation Program at IEB.

Another focus of analysis focuses on how El Salvador's bid to accept bitcoin as an official means of payment –as it does with the dollar–can impact on cryptoassets. Will it benefit the sector as a whole?

Garrido states that El Salvador's decision to accept cryptocurrency as an official means of payment has a tremendous impact, since bitcoin can be used for everything, including taxes or debts, and in addition it will not be necessary to pay profits on operations carried out the token. ” It is an unexpected turn, although it makes all the sense in a country where a high percentage of citizens do not have access to any type of financial service and where the local currency is directly linked to the US dollar, " he says.

7 experts analyze bitcoin price fall El Salvador decision

The fiat money cycle, which began in August 1971 under the Nixon Administration, is coming to an end. For Santiago, the excessive indebtedness of the world economy and the "irresponsible practices of the world central banks" will result, as is already being observed, in inflation that could derail the world debt market-which has been up for more than 40 years - which would presumably lead to the current fiat system.

” This would push back hard money, such as gold, silver, bitcoin and certain stablecoins, " delves the professor at the University of Seville. "Bitcoin is going to mean a liberation from the influence that the economic and monetary policy of the United States has in El Salvador and, without a doubt, it is a fact that can be replicated in many other countries with a similar situation,” he reflects.

El Salvador, therefore, could serve as a testing ground to experience the effect of using bitcoin as a legal tender, understands the head of Bitnovo, who underlines that the Salvadoran president himself has recognized that 70% of the population does not have access to a bank account and operates in the underground economy.

"I imagine that there will probably be more countries that follow these steps, as rumors about Paraguay or Panama already point out, since the adoption of bitcoin is greater in less developed countries due to the fact that a large part of the population is ‘ousted’ or because their local currencies are not solid and suffer a lot of inflation. That they are the first to implement it is a good proof of this,” Castro says.

” I am sure that the whole world and especially countries in a similar situation will follow this process closely, and I am convinced that it will be a success, " Zala says.

” In this way, if in the coming years, it is shown that this adoption has helped to improve part of the economy of El Salvador, surely it will be a demand for more countries in the world to follow the same steps that has taken Nayib Bukele", Lopez agrees.

7 experts analyze bitcoin price fall El Salvador decision latest debate

The latest debate has to do with asset growth over a broad time horizon. Bitcoin has shown a lot in the last 10 years, but many experts believe that it is at the beginning of its potential and its degree of adoption is still negligible.

” The underlying trends are not new; digital currencies have become the main store of value for many digital natives who increasingly rely on the security of network-based ledgers, " Zala says.

Analysts stress that institutional money has begun to arrive, but in an experimental way: there is still a lot of development to be considered as an asset class. "As the adoption grows, volatility will be reduced, key to increasing confidence in the asset and its inclusion in more conservative audiences,” said the head of Bitpanda in Spain.

Fernández explains that one of the reasons why this digital currency is interesting in the long term is that 80% of investors in bitcoin have not moved their investments in their portfolios for 2 years: “The big funds are not speculating or trading, but they buy and maintain their positions, so right now I would tell investors not to worry about the market because when you focus on the blockchain you realize that it is very big”.

7 experts analyze bitcoin price fall El Salvador decision 2020-2021

Throughout 2020 and 2021, extraordinary investments have been made in bitcoin and other cryptocurrencies by institutions and large corporations. When this situation occurs along with the decrease in the frequency of creation of new bitcoins that took place in May 2020, then there is a “shortage” of such an asset.

” This puts us in a scenario that will most likely help to further increase the value of this crypto asset, " Lopez says.

To this must be added that Coinbase has recently been the first cryptocurrency company to be listed on the stock exchange, specifically on the Nasdaq. A firm valued at about $ 100 billion. "It has undoubtedly also helped to strengthen trust in cryptocurrencies," he adds.

Thus, from Santiago's point of view, bitcoin is a deflationary cryptocurrency, which has proven its usefulness as a reserve of value and more than it will in the future: “It will take more and more value and importance in the portfolios of investors due to the possible collapse that the dollar will suffer when it is shown that inflation in the United States is not transitory and has come to stay.”

# 7 experts analyze bitcoin price fall El Salvador decision #