Crypto Market Sees Promised ‘Volatile Weekend’ And El Salvador Prefers Bitcoin Over Dollars

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Last Updated on 30 May 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Scott Minerd, the global Chief Investment Officer of Wall Street firm Guggenheim Partners has good insight on the crypto markets as of late. On 19 May, he declared that the experienced drop-off was not the death of crypto just as the collapse of Tulipmania was not the end of tulip bulbs! A significant signal from an important figure on Wall Street which we reported on.

Last Friday, Scott repeated his crypto knowledge trick, saying that investors should be warned and ‘be prepared for a volatile holiday weekend.’ It comes as the US prepares to celebrate Memorial Day tomorrow and stock markets over there remain closed.

As Sunday 30 May dawns on us, it become clear that Scott must have had some foresight indeed as most cryptocoins are having a tough time showing anything besides losses this weekend, looking for that bottom where they’ll find support. By the time of writing today, most coins in the CoinMarketCap top 100 were down a few percentage points, although a major drop or selloff it was not.

Even David Russell of brokerage TradeStation Group, predicted the same:

It could be a difficult weekend for crypto investors. The mid-May sell-off left some technical scars that may need time to heal. Bitcoin is under $40,000 and dragging on the space.

Fears are therefore building that Bitcoin might be looking for lower support levels still, with some naming $27,000 as a possible new bottom. The next few days will be telling.

Advertentie.

El Salvador coffees

Peter McCormack, owner of the popular website What Bitcoin Did is also a Bitcoin maximalist and a British football fan (that’s quite the combination when you follow the man’s twitter feed like I do).

Yesterday he went on an epic rant against Tesla CEO Elon Musk as Peter felt the former had robbed the people of El Salvador out of part of their livelihood by talking down Bitcoin a few weeks ago, a moment which many pinpoint as the start of the current drop.

Just like many countries in Africa (see our reporting of September last year already), who used to rely on dollar conversion for their money stream, poorer people in Central and South America have now turned to Bitcoin as well while the Federal Reserve continues printing dollars to prop up the American economy.

Peter said already earlier this month that he was in:

El Salvador right now reporting on a bitcoin project which has given hope to many people. While the US government debases the dollar, there are no stimulus cheques reaching here. El Salvador is dollarised and many have turned to #bitcoin to protect their income. I assume you have heard of the Lightning Network?

The entire ecosystem in El Salvador uses it here, offering instant and virtually free final settlement. It is a far superior technology to any other “faster” cryptocurrency.

He explained the story again in a conversation with Dan Held of Kraken yesterday and hoped that Musk would inform himself better before going on tweets that hurt Bitcoin and people in developing economies who have found an actual use for cryptocurrency.