There are interesting things happen in Venezuela right now, albeit it may not be overly positive news for Bitcoin. SurBitcoin, the country’s largest cryptocurrency exchange platform, has seen a 26% price decrease for Bitcoin all of a sudden. Some sell orders post Bitcoin offers at nearly US$200 below the global market average.
Is Venezuela Cooling Off on Bitcoin?
It is difficult to answer that question, as it seems some people are desperately trying to liquidate their Bitcoin holdings right now. Selling below the global market average is not that unusual, but with a margin of nearly US$200, something seems to be amiss. Interestingly enough, all of these trades are taking place on the Surbitcoin platform.
Some people assumed these trades were executed due to a bug with the Surbitcoin trading engine. However, that does not seem to be the case, as the platform is working as intended. One thing that could be causing this selling spree is the correlation between the US Dollar and Venezuelan Bolivar.
All things considered, a lot of people are selling Bitcoin on Surbitcoin at 26% below the market price. Even if the Bolivar were to crash overnight, such a big Bitcoin price difference would be difficult to explain. That being said, the people living in Venezuela need to cover their costs as well, which can sometimes force one’s hand to sell Bitcoin at the lowest price possible.
A similar trend has taken place in Venezuela where the US Dollar was concerned. Many investors in the country saw the US Dollar as a haven when the crisis hit. But in the end, they were forced to dump their foreign currency on the market at rock bottom prices. Life in Venezuela requires Bolivars, unfortunately, and neither Bitcoin nor the US Dollar is commonly accepted payment methods.
But there is more to it than that, as Surbitcoin is facing difficulties with their Banesco banking partner. Plus, La Patilla published an article that is not putting Bitcoin in a positive spotlight by any means. However, both of these things are not sufficient to warrant such a drop in price all of a sudden. We will keep monitoring the situation as more information becomes available.
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