Bitcoin Drops 18%, El Salvador Makes Crypto Legal Tender

Crypto markets experienced a momentary tumble that resulted in some of the most popular digital-assets registering double-digit losses, until staging a mini recovery.

MarketWatch reported that at last check, Bitcoin was changing hands $46,964.65, down 9.1 per cent but had sunk to an intra-session 24-hour nadir at $42,921.27 on CoinDesk.

Ethereum, the number-two largest crypto by market value, was down 12 per cent at $3,461.97, but had hit a low at $3,036.30.

Strategists said there was no immediate catalysts for the sudden drop and its recovery, but investors also noted that Coinbase Global Inc., the U.S.’s largest crypto exchange, reported trading problems due to volume on its platform.

As of 1:40 p.m. Eastern Time, Coinbase reported that its technical problems had been resolved.

The turmoil in digital assets comes as El Salvador officially became the first country in the world to adopt Bitcoin as legal tender, allowing Salvadorans to do everything from buy goods and services to paying taxes.

Razaqzada saysBitcoin’s struggle to stay above a price at $50,000, which some technical analysts view as a point of resistance, may provide some fodder for crypto skeptics and raise concern among digital-asset enthusiasts.

The ThinkMarkets analyst says whether this will ignite fresh momentum buying remains to be seen. Bitcoin repeated failure to hold above $50,000 must be concerning some bullish investors,” was quoted as saying.

Add Your Comment