Bitcoin prices suffered a lightning crash this morning, dropping to their lowest level in nearly a month on the exact same day El Salvador adopted bitcoin as legal tender.
The world’s largest digital currency hit $ 42,921.27 around 11:10 a.m. EDT, according to figures from CoinDesk.
At this point, the cryptocurrency, which today opened above $ 52,000, had fallen more than 15% within an hour, additional data from CoinDesk reveals.
In addition, it was trading at its lowest level since August 9.
Following this sharp decline, digital assets quickly recovered, surpassing $ 47,000 within 20 minutes of this multi-week low.
As of this writing, bitcoin is trading at around $ 47,300, almost 12% below its intraday high of around $ 52,900.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Digital currency experienced these sharp price swings on the very day El Salvador was to adopt bitcoin as legal tender.
This development was greeted with much celebration, as El Salvador was the first country to exploit digital currency in this way.
However, some market watchers had a lukewarm reaction, pointing out that El Salvador’s population is smaller than New York’s.
Kay Khemani, CEO of Spectre.ai, weighed in on this issue, as well as how it might affect bitcoin markets going forward.
âThe impact of El Salvador’s adoption of BTC is largely embedded in Bitcoin’s history, but not the other developing countries that follow in their wake. This creates a series of potential and positive catalysts for long-term adoption. ”
âWhile this move is a very forward-looking step for El Salvador and Bitcoin, it is a double-edged sword as no big economy will follow anytime soon,â he predicted.
“Instead, El Salvador has become the proverbial test subject and major nations will be looking to see if the adoption of Bitcoin is worth it.”
“The ‘wait and see’ approach is the best theoretical option in the games and one that is likely to be adopted,” Khemani added.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.