Bitcoin (BTC) transactions have plunged in El Salvador despite positive local legislation and incentives over the years. The decline in specific regions aligns with the wider trend, but analysts added a twist as bulls expect a rebound in asset prices over the next quarter.
Bitcoin Retail Figures Tank Again
Jon Atack, a Bitcoin core contributor, revealed that businesses in El Salvador are recording fewer crypto transactions, the lowest in the last four years in some cities.
A restaurant in El Zonte, popularly known as Bitcoin Beach, saw only one transaction in August, a sharp contrast to previous volumes that drew speculations of even larger flows. El Zonte was also seen as instrumental in the country’s positive BTC policies.
Atack explained that customers now prefer traditional card payments and even workers reject tips in satoshis. A staff member said she had forgotten how to use her Bitcoin/crypto app, possibly after limited transactions over a long period.
Similarly, several visitors shared similar experiences with a lack of enthusiasm to make Bitcoin payments, although the infrastructure remains available. At Bitcoin Beach, merchants can still accept payments, so the decline reflects individual customers’ sentiment.
 
The data shows a consistent decline, driven by several factors, including the initial institutional slump. Bitcoin price dipped from an all-time high above $125k to $60k this year. While whales were significantly affected, smaller holders had to restructure their portfolios.
Most holders in El Salvador prefer to hold their assets and watch rising demand rather than offload them in retail transactions. At the time of writing, Bitcoin’s price stands at $78,517, up from previous quarters.
Customers are holding on to Bitcoin and altcoins and will likely continue to do so for the rest of the year. Although this shows a steep decline, users still believe in the use case as a daily trading currency. According to most holders on social media, it’s more of a debate between the two use cases: transactions and a store of value.
El Salvador remains bullish toward Bitcoin and adopted the largest crypto as legal tender in 2021. The country continues to add to its reserves, becoming a rallying point for investors citing data from other countries.
Be the first to comment