Bitcoin tumbles 18% as El Salvador adopts it as legal tender ! Falls to Lowest

why bitcoin is down ?

Bitcoin Falls to Lowest in Month as El Salvador Rollout Falters

Bitcoin El Salvador

Bitcoin plunged as much as 18% to its lowest level in a month as El Salvador’s crypto rollout appeared to be faltering.

el salvador bitcoin news

why did bitcoin drop today ?

bitcoin crash today : The largest cryptocurrency fell as low as $43,050 in New York Tuesday, tumbling more than 10% in the course of an hour, before recouping about half the losses. The Bloomberg Galaxy Crypto Index, which tracks some of the largest digital tokens, lost as much as 19% at one point.

why is bitcoin going down ?

Bitcoin tumbles 18% as El Salvador adopts it as legal tender

el salvador bitcoin (el salvador btc) : The price of bitcoin fell Tuesday after breaking through $52,000 late Monday, reaching its highest level since May.
The price action comes on the day El Salvador is set to adopt the largest cryptocurrency by market cap as legal tender, becoming the first country to do so.

Crypto adjacent stocks MicroStrategy and Coinbase also fell about 8% and 4%, respectively. Coinbase users were experiencing delayed or canceled transactions at “elevated rates” in the morning, the company said in an update on Twitter, but those issues were resolved by the afternoon. Major crypto exchanges Kraken and Gemini were also investigating delays and performance issues.

Early Tuesday El Salvador temporarily disabled Chivo, its government-run bitcoin wallet, to increase the capacity of the servers, which were hindering new users from installing it, President Nayib Bukele announced in a tweet at about 7:00 a.m. EST.

“Any data they try to enter at this time will give them an error,” he said. “This is a relatively straightforward problem, but it cannot be fixed with the system connected.”

The market action is unsurprising, according to Leah Wald, CEO at Valkyrie Investments, who said the news was largely priced into the market “a while ago.”

“When this move was first announced, it didn’t have nearly as big of an impact on price as some may have expected it might, possibly because El Salvador’s population is less than New York City’s, but also because the announcement was light on details and people were on the fence about how this was going to be implemented,” she told CNBC, noting that much of El Salvador lives in poverty and doesn’t have the internet or smartphone access required to participate in the bitcoin network. “Transaction fees, processing times, and other hurdles also make this feel more like a beta test rather than a solution to many of the problems plaguing the country’s poor,” Wald added.

As part of the new law, businesses will be required to accept bitcoin for goods and services, though merchants who aren’t technologically able to accept bitcoin will be exempt. The government has installed 200 bitcoin ATMs around El Salvador. It also bought 400 bitcoins worth about $20 million and is preloading Chivo wallets with $30 worth of bitcoin for Salvadorans who register.

Some traders are saying on social media that they will be buying $30 worth of bitcoin in their local fiat currencies to commemorate and support El Salvador’s new law, at 3:00 p.m. ET. But bitcoin prices were sliding into the afternoon anyway.

el salvador currency

El Salvador buys bitcoin as the digital currency becomes legal tender

El Salvador became the first country to adopt bitcoin as a national currency on Tuesday, kicking off a radical monetary experiment that could pose risks to the fragile economy.
President Nayib Bukele announced late Monday that his government purchased 200 bitcoins ahead of El Salvador‘s formal adoption of the currency. He added another 150 on Tuesday, bringing the country’s total to 550 bitcoins.
Bitcoin is now legal tender in El Salvador alongside the US dollar. On Tuesday, the risks of the approach were highlighted when bitcoin prices dropped sharply on what Bukele has called “Bitcoin Day.”

Bukele, a right-wing populist who rose to power in 2019, announced the plan to start using bitcoin in June. The law designating bitcoin as legal tender says that all “economic agents” shall accept the cryptocurrency as a form of payment. It also says that tax payments can be made in bitcoin.

why did bitcoin drop today ?

El Salvador Becomes First Country to Adopt Bitcoin as National Currency

Once word got out, the use of bitcoin spread through town from mom-and-pop stores to slick espresso bars, said Jorge Valenzuela, one of Hope House’s founders.

“We have changed the narrative about El Salvador, from being a dangerous country to a nation of crypto assets,” he said.

The official use of bitcoin comes as Mr. Bukele faces increasing economic headwinds, a widening budget gap and limited access to debt markets. Diplomatic ties with the Biden administration have been strained as international organizations have accused Mr. Bukele of taking authoritarian control of the country.

Mr. Bukele’s ruling party legislators fired all members of the country’s top court in May. The newly appointed judges ruled late Friday that the president can serve two consecutive terms, allowing Mr. Bukele to stand for reelection. The U.S.

Embassy in El Salvador said the ruling violated the country’s constitutional ban on immediate reelection.

El Salvador

El Salvador , officially the Republic of El Salvador , is a country in Central America.

It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador’s capital and largest city is San Salvador. As of 2021, the country had a population of approximately 6,825,935.

Cryptocurrencies crumble as Bitcoin becomes legal tender in El Salvador

btc drop today !

El Salvador President Nayib Bukele buys the dip. “150 new coins added,” he says via tweet.

why did btc drop ? Bitcoin-related stocks slide, following a 9.0% drop in the world’s biggest cryptocurrency by market cap, bringing bitcoin to ~$46.9K.

The most obvious drop comes from bitcoin miners: Bit Digital (BTBT -10.7%), Bitfarms (BITF -8.0%), Riot Blockchain (RIOT -8.7%), Marathon Digital (MARA -8.6%), Hut 8 Mining (HUT -7.2%). Others caught in the downdraft include Coinbase (COIN -3.8%), MicroStrategy (MSTR -7.0%), Grayscale Bitcoin Trust (OTC:GBTC -8.1%), and Osprey Bitcoin Trust (OTCPK:OBTC -9.8%).

crypto prices :

Other major cryptos also swoon — ethereum (ETH-USD) declines 14%, Cardano (ADA-USD) falls 16%, XRP (XRP-USD) -19%, Binance Coin (BNB-USD) -19%.

The crypto decline comes as the subreddit community attempts to coordinate the purchase of bitcoin to show support for El Salvador’s adoption of bitcoin as legal tender becomes effective today.