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The Boral Ltd (ASX: BLD) share price finished the day down 2.17% on Wednesday, at $5.86 per share.

While the building products and construction materials company eked out a 0.7% gain yesterday, the Boral share price remains down 17% over the past month.

Below, we take a look at some of the recent headwinds buffeting the company.

What headwinds has Boral faced recently?

Boral’s share price looks to have come under some pressure with S&P Dow Jones Indices’ pending changes to the S&P/ASX Indices.

That will see Boral exit the ASX 100 Index, replaced by Virgin Money UK (ASX: VUK). While that won’t directly impact retail investors or even many institutional funds, some of the largest fund managers are limited to investing in the ASX 100 pool. This means Boral may now be off their radar.

The changes, part of the September quarterly review, come into effect on 20 September, before the opening bell.

Boral’s share price may also have been negatively impacted by its 2021 financial year results, released on 24 August. The results were largely short of analyst expectations, with revenue from continuing operations decreasing 6% year-on-year to $2.92 billion.

The company also did not declare a final dividend and said that lockdowns will impact its quarterly performance by roughly $50 million.

Going back a few weeks earlier, the Seven Group Holdings Ltd (ASX: SVW) takeover bid rounded off on 29 July.

Seven Group now holds 69.5% of Boral’s shares, giving it majority voting rights. This saw the quick ousting of the company’s previous Board chair Katheryn Fagg, who was replaced by Seven Group’s CEO Ryan Stokes.

Boral share price snapshot

Up until the end of July, the Boral share price was enjoying a strong run. On 26 July the company was trading at multi-year highs of $7.41 per share. You have to go back to 20 April 2018 to find the Boral share price trading any higher than that.

Since that high, shares have retraced 21%.

Year-to-date, the company remains up 18%. That compares to a 12% gain posted by the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

The post Why the Boral (ASX:BLD) share price is down 17% in a month appeared first on The Motley Fool Australia.

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• Brokers think these 2 top ASX shares are buys in September 2021
• The ASX reporting wrap-up: WiseTech, Bravura, Seven Group
• Seven Group (ASX:SVW) share price drops on FY21 earnings
• Boral (ASX:BLD) share price on watch as revenue falls

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) moved to the downside. The benchmark index closed 0.24% lower to 7,512 points. Shares fell across most sectors on Wednesday, with real estate and consumer staples being some of the hardest hit. Overall, 132 shares of the top 200 finished the day lower than yesterday.

However, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered the biggest gains while the market fell:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Washington H Soul Pattinson & Company Ltd (ASX: SOL) was the biggest gainer today. Shares in the diversified investment company climbed 5.11% despite no news out. Find out more about Soul Patts here.

The next best performing ASX share out of the top 200 today was Milton Corporation Ltd (ASX: MLT). The investment company’s shares moved higher as its merger with Soul Patts moves closer, gaining 4.82% to $7.40. Uncover the latest Milton Corporation information here.

Today’s top 10 biggest gains were made in these ASX 200 shares:

ASX-listed company	Share price	Price change
Washington H Soul Pattinson & Company Ltd (ASX: SOL)	$38.05	5.11%
Milton Corporation Ltd (ASX: MLT)	$7.40	4.82%
Technology One Ltd (ASX: TNE)	$11.72	4.74%
Macquarie Group Ltd (ASX: MQG)	$178.94	4.58%
QUBE Holdings Ltd (ASX: QUB)	$3.415	4.43%
Alumina Ltd (ASX: AWC)	$2.105	4.21%
TPG Telecom Ltd (ASX: TPG)	$6.82	2.56%
South32 Ltd (ASX: S32)	$3.36	2.13%
Computershare Ltd (ASX: CPU)	$17.02	2.10%
The Star Entertainment Group Ltd (ASX: SGR)	$4.29	1.66%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making the biggest moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are making a move on the ASX 300?
• Here’s why the Milton (ASX:MLT) share price has rallied 22% in a month.
• ASX 200 midday update: Macquarie jumps, gold miners sink
• Leading broker reveals why these 10 big-name shares have been firing up its clients
• 2 ASX 200 shares that could be buys for dividends

Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Identitii Ltd (ASX: ID8) share price is rocketing today despite no news from the financial technology company.

At market close, Identitii shares finished up 11.11% to 20 cents. Even after falling 21% yesterday, this means its shares are up an astonishing 150% in a month. Compare this to the All Ordinaries Index (ASX: XAO), which is marginally down 0.09% on the same time period.

What’s going on with Identitii shares?

Recently, the company provided the ASX with 3 separate announcements that drew investor attention, shooting up the Identitii share price.

The first release dated on 25 August regarded a patent and intellectual property (IP) update. Identitii noted its previously filed applications in several global jurisdictions in August 2015.

However, in December 2020, its patent was approved in the United States, and granted in April 2021. Identitii noted that it has filed additional claims in the US this month, as part of its wider IP strategy.

The company stated that its IP offering leverages global demand for systems that capture faster and detailed transaction information.

Furthermore, the company updated the market with its full-year results the following day. Identitii delivered a 45% year-on-year increase in revenue to $1.4 million. When factoring in the grant income, this figure rose to $2.7 million.

Operating costs fell 6% to $8.6 million, compared to the prior corresponding period.

On the bottom line, the company noted a net loss for the year, down 18% to $5.8 million.

Last but not least, Identitii highlighted the launch of its brand new software-as-a-service (SaaS) platform. The product aims to simplify and automate AUSTRAC compliance. This entails reducing the risk of non-compliance with suspicious matter, international transfer and large cash transaction reporting obligations.

Initially available for AUSTRAC reporting in Australia, the platform can be adapted for regulatory requirements in other countries. New Zealand, the United Kingdom and Canada are among the next jurisdictions to be added.

Identitii share price summary

Until recently, it had been a disappointing 12 months for Identitii shares travelling from 29 cents in September 2020 to 6.7 cents in August. This reflects a drop of almost 80% in the space of 11 months. However, the company’s share price stormed to incredible highs to be down only 8% for the past year.

At today’s price, Identitii presides a market capitalisation of roughly $31.2 million, with approximately 152 million shares on its books.

The post Why the Identitii (ASX:ID8) share price is up 11% today appeared first on The Motley Fool Australia.

More reading

• Why the Identitii (ASX:ID8) share price has surged 180% in a month

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bank of Queensland Limited (ASX: BOQ) share price is having a fortnight to remember.

Over the past 2 weeks, shares in the financial institution have risen 4.97%. At the close of market today, Bank of Queensland shares finished at $9.70 (1.25% higher on yesterday’s close). For context, the S&P/ASX 200 Index (ASX: XJO) is 0.41% lower over the same (also 0.41% lower on yesterday’s close).

While the company hasn’t made any significant announcements in this time, there may be some factors that explain what’s going on.

Let’s take a closer look.

Bank of Queensland shares are heading north

One reason for the rising Bank of Queensland share price may be positive broker notes coming out about the company.

As The Motley Fool has previously reported, analysts at JPMorgan have rated the Brisbane-based bank as the third-best financial share on the market, behind Macquarie Group Ltd (ASX: MQG) and National Australia Bank Ltd. (ASX: NAB). Goldman Sachs analysts believe Bank of Queensland shares could reach as high as $9.90 and Morningstar Quantitative believes its shares could get as high as $10.34.

Another possible reason is simply that most ASX bank shares have been doing well for a variety of reasons. For example, the NAB share price is 3.83% higher, the Commonwealth Bank of Australia (ASX: CBA) share price is 2.49% greater, while the Macquarie share price has increased 8.98% – all within the space of 2 weeks.

There are many reasons for the rising financial sector. These include improved investor expectations, perceived stability of banking shares, or forecasted long-term economic stability. Whatever the reason, banking shares, in general, have been overperforming the ASX 200 over the last 2 weeks.

Bank of Queensland share price snapshot

Over the past 12 months, the Bank of Queensland share price has increased 60.35%. Year to date, shares in the bank have appreciated by 29.07%. It’s outperformed the CBA share price, the Westpac Banking Corp (ASX: WBC) share price, and slightly underperformed the NAB share price during these aforementioned periods.

Bank of Queensland has a market capitalisation of approximately $6.2 billion.

The post The Bank of Queensland (ASX:BOQ) share price is up 5% in 2 weeks appeared first on The Motley Fool Australia.

More reading

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• The Bank of Queensland (ASX:BOQ) share price is now trading on a forecast 4.4% fully franked dividend yield
• The Bank of Queensland (ASX:BOQ) share price is rated as a strong buy by brokers
• Bank of Queensland (ASX:BOQ) share price struggles as Court finds contracts ‘unfair’
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Motley Fool contributor Marc Sidarous owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Afterpay Ltd (ASX: APT) share price closed in the red on Wednesday.

Afterpay shares were on the move after the company filed a submission to the federal Senate select committee investigating “Australia as a Technology and Financial Centre”.

Let’s investigate further.

Why is Afterpay making the news again?

Afterpay is making headlines again after sharing its views that a transition of payments services to allow blockchain technology could reduce payment costs for merchants.

The buy now, pay later (BNPL) company urged the Australian government and Reserve Bank of Australia (RBA) to allow policymakers to develop an Australian “stablecoin”.

For reference, a stablecoin is a type of cryptocurrency that has a relatively ‘stable’ price. Usually, this is achieved by pegging itself to an already established currency, such as the US dollar or Australian dollar for instance.

These stablecoins attempt to solve the problem of extreme volatility in cryptocurrency markets.

Afterpay does not offer any cryptocurrency-related services or payment methods at the moment. However, it told the Senate select committee that “growing FinTech businesses” have business models that have not been “contemplated by pre-existing regulatory frameworks”.

Consumers’ changing preferences

The call is as much is a reflection of the current payments services landscape where merchants have been forced to adapt to the demands of consumers in the modern FinTech world.

Afterpay echoed this sentiment in its submission, stating its customers “now expect to be able to access more flexible ways of paying” for retail services.

The company is therefore adamant blockchain will be of immense benefit to merchants, removing intermediaries such as banks and credit card companies from the equation.

This would have the net effect of reducing transaction fees associated with card payments, according to Afterpay.

US payments giant Square, Inc, which is in the process of buying Afterpay in a $39 billion transaction announced in August, already earns “significant revenue” from Bitcoin, the flagship cryptocurrency that uses blockchain technology, according to a report in today’s Australian Financial Review.

Square recognised a 200% year on year increase in its Bitcoin revenue in the last quarter to US$2.7 billion and owns 8,027 Bitcoins, according to the report.

The Senate enquiry is ongoing and heard further commentary from Afterpay senior executives on Wednesday. It remains unclear if the Australian government has any intention of developing an Australian stablecoin.

Afterpay share price snapshot

The Afterpay share price has had a choppy year to date, having posted a return of 10% since January 1. It is also down 1.6% over the past month.

Despite this, Afterpay shares have climbed 73% over the past 12 months.

This has outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

The post Here’s why Afterpay (ASX:APT) is making news again appeared first on The Motley Fool Australia.

More reading

• How have ASX BNPL shares performed during the August 2021 earnings season?
• Afterpay’s done, so here’s the BNPL player we’re backing: expert
• Here’s why the Afterpay (ASX:APT) share price is up 5% in a month
• Afterpay (ASX:APT) share price edges higher amid increasingly crowded BNPL space
• Here’s a look at how ASX WAAAX shares compare on growth

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian share market is home to a good number of promising small caps that have the potential to grow strongly over the 2020s.

Three that could be worth watching closely are listed below. Here’s what you need to know about them:

Adore Beauty Group Ltd (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia’s leading online beauty retailer with ~700,000 active customers. Adore Beauty could be destined for big things thanks to its very long runway for growth. This is due to the relatively low penetration of online beauty sales relative to other Western markets and categories.

Morgan Stanley has an overweight rating and $6.00 price target on its shares. It believes the company can grow strongly over the medium term.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap share to look at is Bigtincan. It is a leading provider of enterprise mobility software to businesses globally. Bigtincan’s popular software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results by creating more positive and efficient buying experiences. Demand for its software continues to grow and is underpinning strong annualised recurring revenue (ARR) growth.

Morgan Stanley appears to believe this strong form can continue. Late last month it put an overweight rating and $2.10 price target on Bigtincan’s shares.

Damstra Holdings Ltd (ASX: DTC)

A final small cap to watch is Damstra. It is a growing integrated workplace management solutions provider which provides a cloud-based workplace management platform that is used by businesses globally. Its platform allows users to track, manage, and protect their workers and assets. Demand has been increasing strongly in recent years and this continued in FY 2021, underpinning solid revenue growth.

Shaw and Partners is very positive on the company. It currently has a buy rating and $1.88 price target on Damstra’s shares. The broker believes its shares are extremely cheap and sees potential for a major re-rating as its recurring revenues ramp up and margins improve.

The post 3 stellar small cap ASX shares for your watchlist this month appeared first on The Motley Fool Australia.

More reading

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• Why Adore Beauty, Fortescue, InvoCare, & Temple & Webster are charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re nearing retirement, it may be time to start focusing a little on capital preservation. This means investing in lower risk shares rather than fledgling growth shares.

But which shares might be suitable? Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage could be a good ASX share for a retirement portfolio. It is one of the region’s largest self-storage operators with over 200 centres in the ANZ market. Through this growing network the company provides tailored storage solutions to tens of thousands of residential and commercial customers.

National Storage has been growing at a solid rate over the last decade thanks to its strong position in a fragmented market and its growth through acquisition strategy. This led to the company reporting a 28% increase in underlying earnings to $86.5 million in FY 2021.

The good news is that management still sees plenty of room to grow both organically and through acquisitions and developments. It is targeting underlying earnings per share growth of at least 10% in FY 2022.

Suncorp Group Ltd (ASX: SUN)

Another ASX share to consider for a retirement portfolio is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

Like National Storage, it was on form in FY 2021. For the 12 months ended 30 June, it reported a 42.1% jump in cash earnings to $1,064 million. This allowed the insurance giant to declare a special dividend and announce a $250 million on-market share buyback.

Suncorp also spoke positively about the future and its FY 2023 plan. It is aiming to deliver a growing business with a sustainable return on equity above the through-the-cycle cost of equity by that year.

The post 2 quality ASX shares for a retirement portfolio appeared first on The Motley Fool Australia.

More reading

• Why the Suncorp (ASX:SUN) share price is edging higher today
• Afterpay (ASX:APT) share price edges higher amid increasingly crowded BNPL space
• Suncorp (ASX:SUN) share price remains flat despite BNPL offering
• 2 ASX dividend shares with attractive yields
• Top broker says Suncorp (ASX:SUN) share price is a buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The African Gold Ltd (ASX: A1G) share price is rocketing straight to the moon.

At the time of writing, shares in the gold miner were trading for 35.8 cents each – up 74.39%. At one point today, shares exploded to an all-time high of 43 cents, which is an astronomical 110% increase on the previous day’s close.

Today’s positive price rise comes after the company announced “high-grade” gold assay results from one of its mines and a capital raise.

Let’s take a closer look at today’s news.

The African Gold share price is flying

In a statement to the ASX, African Gold confirmed “high-grade” assay return samples at its Didievi Gold Project in Côte D’Ivoire. Highlights include:

• a 10m wide ore at 123g of gold per tonne including 2.0m at 613g of gold per tonne
• a 17.4m wide ore at 17g of gold per tonne including 1.0m at 216g of gold per tonne

According to the company, the BG system at Didievi is currently over 1.5km x 1km and open. It has identified a number of new lodes as part of the recent drilling program. This announcement may be one reason the African Gold share price is rising.

As well, the company announced it would launch a rights issue to raise approximately $3.9 million. African Gold will undertake a 2 for 7 non-renounceable rights issue at 15 cents per share. The company says the funds will be used to cover the costs of the offer and then for capital works.

Management commentary

African Gold CEO and Exploration Manager Glen Edwards said:

We recently announced some spectacular broad, high-grade intercepts from our recently completed drilling programs at our Didievi Gold Project in Côte d’Ivoire.

Historically, it hasn’t been recognised that a high-grade gold component existed at Didievi however artisanal miners have been collecting free gold on the margins of the deposit. The historical drilling was assayed by fire assay (the most common assay method) which picked up some very high grades. As part of the QA/QC of our current drill program we ran screen fire assays over the higher-grade intervals.

African Gold share price snapshot

Over the past 12 months, the African Gold share price has increased 157%. Year to date, the company’s value has appreciated 33.33%. It has vastly overperformed the price of gold.

In 12 months, the yellowish metal’s market price has decreased 7.65%. While since the start of 2021, it is 5.22% lower. It is currently trading at around US$1,800 per troy ounce. Looking ahead, Trading Economics is forecasting the price of gold to marginally increase by the end of the quarter before falling to around US$1,740 per troy ounce in a year’s time.

The post African Gold (ASX:A1G) share price explodes 110% to all-time high appeared first on The Motley Fool Australia.

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• Bitcoin just crashed 11%. Here’s why…
• 2 fantastic blue chip ASX 200 (ASX:XJO) shares to buy in September
• Global Energy (ASX:GEV) share price leaps 18% on green hydrogen grant
• Why the Tabcorp (ASX:TAH) share price is up 5% so far this week

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price is sliding despite claims the company’s potential merger with Oil Search Ltd (ASX: OSH) will help it chase more clean energy projects.

Santos’ CEO Kevin Gallagher, reportedly spoke of the company’s plans to clean up emissions at a networking event last night.

Right now, the Santos share price is $6.14, 0.32% lower than its previous close.

Let’s take a closer look at today’s reports of the oil and gas producer.

Could the Santos-Oil Search merger be an environmental win?

The Santos share price is slipping today despite its CEO reportedly outlining the company’s emission reduction plans.

According to reporting by the Australian Financial Review (AFR), Gallagher stated the company’s planned growth will be significantly extended if the merger goes ahead due to an increase in cash flow.

The extra cash will, supposedly, allow Santos to transition towards carbon capture and storage and hydrogen initiatives sooner.

Santos is working to create a carbon capture and storage project in South Australia’s Moomba.

According to the AFR, Gallagher stated that the company’s looking at potentially creating another carbon capture and storage project near Darwin.

Additionally, Santos is reportedly considering using direct air carbon capture technology to inject carbon underground.

Gallagher supposedly said Santos will spend “a few billion dollars to say the least” to get its carbon sequestration projects underway.

He also reportedly stated Santos has the cash flow to support the project until the middle of the decade. However, by merging with Oil Search it could afford to keep sequestering carbon until 2030.

The merger still needs to receive approval from shareholders and, reportedly, from Papua New Guinea’s government before it can go ahead.

Santos share price snapshot

The Santos share price has been performing poorly lately.

It is currently 4.6% lower than it was at the start of 2021. However, it has gained 14.5% since this time last year.

The post Santos (ASX:STO) share price slides despite latest clean energy spruik appeared first on The Motley Fool Australia.

More reading

• Afterpay’s done, so here’s the BNPL player we’re backing: expert
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 energy shares fell today – here’s why
• Why the Santos (ASX:STO) share price is edging lower today
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC) is deep in the red, down more than 11% in the past 24 hours to US$46,746 (AU$63,170).

That’s the digital token’s steepest daily fall since it began a remarkable rebound on 20 July. At that time, it was worth US$29,731, having fallen from a record high of US$64,889 in mid-April.

And, as we often see, where Bitcoin goes, most altcoins follow.

The top 4 coins by market valuation are all deep in the red today, including number 2 crypto Ethereum (CRYPTO: ETH). Ether is down 12% since this time yesterday to US$3,470.

What’s driving the Bitcoin selloff?

Most fingers are pointing squarely at El Salvador for driving the current Bitcoin retreat.

The Central American nation is in the midst of a world first experiment by making Bitcoin its national currency alongside the US dollar.

El Salvador’s decidedly unconventional president, Nayib Bukele, is the driving force behind the move which follows the nation’s economy contracting last year at a pace not seen in 40 years. The nation’s citizens can now pay for goods and services, alongside their taxes, with the world’s number one crypto.

Of course, for that to work, El Salvador’s government’s cryptocurrency wallet, Chivo, also needs to function as advertised.

And therein lies the likely cause for Bitcoin’s plunge.

As Bloomberg reports:

Twitter users reported being able to pay for services such as breakfast at McDonald’s with Bitcoin. But the cryptocurrency plunged as much as 17% to its lowest level in a month amid news that the government disconnected its Bitcoin wallet early on Tuesday to fix problems.

While Chivo came back online later, it may well have shaken confidence in the government’s ability to deliver a reliable exchange platform.

The government has gifted users who register with their Salvadoran national ID number with US$30 worth of Bitcoin in an effort to increase its use.

However, far from everyone is a believer.

Jorge Colorado is a US-based Salvadoran anthropologist. He aired his concerns about Chivo and the El Salvador’s wider Bitcoin rollout to CoinDesk:

The bitcoin thing was presented by Bukele at a meeting of bitcoiners in Miami several months ago. It was a presentation in English. The following day all the information was in English and was [not] communicated to the people [of El Salvador] until many days later, with very little information, almost superficial…

The Chivo wallet contracts are secret, there was no bidding, public money has been used as if it were private money.

It may be more than just Chivo glitches

The Bitcoin price is notoriously volatile.

And while the 11% fall is the biggest in several months, there are likely other factors at play.

Like crypto investors getting set for an end to the era of post-pandemic easy money.

According to Chris Weston, head of research at Pepperstone Financial Pty, “Could it also be that the liquidity beneficiaries – which could include crypto – may be sensing more normalized future policy setting from major central banks?”

The post Bitcoin just crashed 11%. Here’s why… appeared first on The Motley Fool Australia.

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• Bitcoin cracks above US$50,000 as more altcoins soar… now what?
• These 2 altcoins are leaving Bitcoin in the dust this week
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• Bitcoin vs Ethereum: Which is better for me?
• The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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