Bitcoin is back below the newly reclaimed $50,000 milestone as Central American country El Salvador officially adopted the cryptocurrency as a legal tender today.
The cryptocurrency fell as much as 16 percent on Tuesday morning and according to data from Coin Metrics, it was last down by about 8.5 percent. Today marks one of the most volatile days in the history of Bitcoin price crashes. According to Bloomberg Galaxy Crypto Index, Bitcoin fell by 19 percent in trading hours, it also added that other smaller digital assets sold off.
El Salvador’s official launch of Bitcoin as a legal tender suffered some difficulties which delayed the roll-out. Bitcoin lost as much as $9,000 as it fell as low as $43,050 today. El Salvador’s President said that the country took advantage of the dip to buy more Bitcoin, stating that it added 150 more BTC to its previous holding bring the country’s total holding to 550 BTC.
Bitcoin had been trading below $50,000, fluctuating between $30,000 and $40,000 for weeks. Bitcoin’s first major price crash happened after Elon Musk’s EV company stopped accepting the flagship currency as a means of payment for its vehicles. Bitcoin which had reached an all-time high of $65,000 fell more than 50 percent and struggled between $30,000 and $40,000 before eventually crossing the $40,000 milestone and then $50,000.
El Salvador’s adoption of Bitcoin is expected to boost Bitcoin and also push other countries to adopt the cryptocurrency. El Salvador’s government has launched its Bitcoin wallet called Chivo which comes loaded with $30 worth of Bitcoin for Salvadoran citizens. As part of the adoption process, businesses in El Salvador are to accept the Flagship currency just like they would accept the US Dollar. Citizens can also make tax remittances, as well as other remittances using Bitcoin, and the government plans to encourage financial inclusion and make sending remittances easy and cheap with Bitcoin.
Already, 200 Bitcoin ATMs have been installed across the country. These machines will enable people to be able to exchange and withdraw their Bitcoin.
El Salvador’s adoption of Bitcoin has faced serious criticism. The International Monetary Fund and the World Bank have come out to speak against the country’s move, emphasizing the risk associated with Bitcoin.
As of the time of drafting, Bitcoin was trading at $46,540.70.