Bitcoin and major cryptocurrencies fall up to 4% after research announcement to El Salvador

Bitcoin El Salvador investigation

The Bitcoin stops the upward momentum that had consolidated in the last hours and returns to $47.000 with a marked decrease of 2%. Ethereum follows in drops of up to 4.23% in the last 24 hours and Polkadot surpasses with a 4.47% drop. So far, only two of the top ten cryptocurrencies remain with a slight rise of 0.02% as Tether and USD Coin.

In the last week, the price of Bitcoin had managed to recover during the week after the fall of September 7, when it lost 11% of its value exactly at the moment it began its status as legal tender in El Salvador. Many attributed this drop to the phenomenon of massively buying accumulated Bitcoin hoping to sell during the euphoria of the historic day when Bitcoin would be legal tender. This caused a wave of sell-offs that ended with a nearly $10,000 drop in the price of Bitcoin. But from that moment Bitcoin began a slow recovery and yesterday, it had managed to reach a growth of 2.37% registering at $48,000.

However bad news stopped that upward outlook. In the last hours, the entity that oversees public management in El Salvador agreed to carry out an audit of alleged irregularities in the purchase of Bitcoin and the construction of kiosks for ATMs of the digital wallet of the government of President Nayib Bukele. A smear of possible corruption around Bitcoin could affect the price.

The Court of Accounts can impose administrative sanctions against officials and is empowered to present notices to the Attorney General’s Office to initiate criminal proceedings in case of finding irregularities in their investigations. At the beginning of September, Cristosal, an organization that defends human rights in Central America, submitted a request for the Court of Accounts to audit the authorization processes for the purchase of digital currency and to review the construction of the cabins where they were installed. ATMs of the government digital wallet Chivo.

In addition, he requested to investigate the permits granted by the municipalities where some 50 service centers for network users were built. However, President Bukele’s government did not immediately respond to a request for comment from Reuters.

“Having admitted the complaint, proceed to carry out the legal analysis report and, in a timely manner, send such report to the General Audit Coordination, so that it may order (to) carry out the corresponding audit examination,” said the Court of Accounts on last Thursday.

According to the indictment, officials allegedly acted illegally by authorizing purchases before the entry into force of a $ 150 million trust to develop the digital project, approved by Congress on August 31.

Bitcoin price analysis indicates that the momentum of bearish price action will continue today, as BTC started pulling back from the night. BTC / USD traded in a range of $47,678.15 – $48,685.87. Trading volume has decreased by 6.67% and totals $27 billion, while the total market capitalization is around $900.9 billion, resulting in market dominance of 42.2 %. Apparently, the bulls weren’t ready to move higher yet, resulting in a slow pullback to the downside again for the past 24 hours.

At this time, the expectation is that Bitcoin will settle at a higher low in the next 24 hours.