Bitcoin Tumbles Nearly 10% As El Salvador Adopts It As Legal Tender

  • Posted on September 08, 2021
  • News
  • By FC Team
  • 216 Views

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. Bitcoin dropped as much as 16% on Tuesday morning. It was last down about 9.5% and trading at $46,892.04, according to Coin Metrics. Ether fell 12% to $3,441.21.Crypto adjacent stocks MicroStrategy and Coinbase also lost about 9% 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.”cnbc.com

Author
No Image
manager

FC Team

No description...

You May Also Like