Eurocoinpay CEO Herminio Fernandez Bitcoin comments: "Bitcoin can go down to $ 25,000, but then it will go up like a shot”.

It's been tough weeks for bitcoin. After reaching, back in mid-April 2021, historical figures that were close to 65,000 dollars (about 54,000 euros), right now –according to CoinMarketCap– oscillates around 36,000 dollars after a new day of falls. And it is likely to get worse, at least that is what Herminio Fernández, CEO of Eurocoinpay, says that bitcoin can fall to 25,000 dollars (20,000 euros). But calm down, he is also sure that, after, "he will go up like a shot"”

The announcement that China banned bitcoin and the rest of cryptocurrencies to financial institutions and payment institutions. And, before, Tesla informing that it would no longer accept cryptocurrency as a means of payment for its cars, are 2 of the reasons that caused the collapse of bitcoin in recent weeks.

Eurocoinpay CEO Herminio Fernandez Bitcoin comments

As if that were not enough, on June 4, 2021, Elon Musk has once again exercised the enormous power he has over cryptocurrencies and, after a tweet in which he mocks bitcoin,he has made it drop to 35,000 dollars,after closing the previous day at 39,208.77 and reaching a maximum of 39,478. 95.

A highlight of this period of fall of bitcoin, is that the whales (the digital wallets that accumulate large amounts of this cryptocurrency) have acquired many bitcoins (they have bought the fall), which indicates that their barrunto –like Fernández's– is that the uptrend will return.

Eurocoinpay CEO Herminio Fernandez Bitcoin comments

A study by Chainalysis points out that it was the small investors who, mainly, decided to sell bitcoins during this crisis, and that those whales (or large investors) acquired around 77,000 (at the current price it would be almost 3,000 million dollars).

The CEO of Eurocoinpay also points in that direction, to argue the reason for the debacle of this cryptocurrency:”Whales and institutional funds want to buy bitcoin cheaper, that is, there are many interests in small investors ('soft hands') to release what they have for them to take." For that reason, he clarifies, “he created that bitcoin will go down even further and then climb at full speed.”

Eurocoinpay CEO Herminio Fernandez Bitcoin comments: To those small investors, Fernández– a cryptocurrency enthusiast-tells them to hold on, to be patient, because " bitcoin is neither a bubble nor a scam.” In his day, he recalls, " it was already at 20,000, fell to 3,000 and went up again. When you prick a bubble it goes to the ground. In addition, bubbles happen with financial assets and bitcoin is a monetary asset."

Eurocoinpay CEO Herminio Fernandez Bitcoin comments

More news:

El Salvador wants to be the first country in the world to convert bitcoin into a legal tender

Nayib Bukele, president of El Salvador, wants his country to be the first in the world to adopt bitcoin as a legal tender. This has been announced in a video that has been broadcast at the Bitcoin 2021 conference, held this weekend in Miami.

Bukele's goal is to bring next week to Congress a legislative proposal to approve bitcoin as a legal tender currency in El Salvador, just as the US dollar is currently.

The president of el Salvador is intended to generate thousands of jobs with this degree, as well as "provide financial inclusion to thousands of people outside the formal economy" because "70% of the salvadoran population does not have a bank account and works in the informal economy", explains the president through a message on his Twitter account.

"Financial inclusion is not only a moral imperative, but also a way to grow the country's economy, providing access to credit, savings, investments and secure transactions," Bukele adds on his social network.

To carry out this measure, Bukele has confirmed that El Salvador will ally with Strike, a digital platform that already works as a bridge between traditional banking and bitcoin users, and that will presumably build the necessary infrastructure so that it can function as legal tender in this country.

The founder of this platform, Jack Mallers, has been optimistic about this measure, noting that it will help "demonstrate the potential and power of bitcoin for everyday use" and that making this cryptocurrency legal tender "protects developing economies from possible impacts of inflation that are common with fiat currency", according to statements collected by the CNBC chain.

It should be borne in mind that the economy of El Salvador contracted 7.9% in 2020 due to the coronavirus pandemic, according to data from the Central Reserve Bank (BCR), although this same body forecasts that at the end of 2021 it will experience a growth of 6%.