Bitcoin and other leading cryptocurrencies went into free fall late Tuesday afternoon. Bitcoin had previously been recognized as an official means of payment in El Salvador. Then the price of the world’s largest cryptocurrency slipped to its lowest level since the beginning of August. The minus has now reached double-digit proportions.
On the day Bitcoin was introduced as the official currency in El Salvodor, the digital currency fell below $ 45,000. In the afternoon, the price of the oldest and largest cryptocurrency on the market fell to $ 44,444. This is the lowest price since the beginning of August. That is a good 14 percent less than the day before. This interrupts the most recent upward movement. Bitcoin had risen significantly since mid-July. At that time it had fallen to around $ 30,000.
The price of the second most important cryptocurrency, Ether, fell even more sharply on Tuesday. It temporarily fell by almost 20 percent to $ 3,194.
The noticeable decline comes on a historic day for Bitcoin. The digital currency Bitcoin has become legal tender in El Salvador. When a corresponding law came into force, the Central American state was the first country in the world to take this step. The law stipulates that every trader who is technically capable of doing so must accept Bitcoin as a means of payment.
“Investors imagined the debut in El Salvador very differently,” said analyst Timo Emden from Late Research, explaining the losses. In addition to technical difficulties, there are growing concerns about misuse of the cryptocurrency, such as money laundering, which are unsettling investors. According to Emden, there were reports of problems with the download of the “Chivo” wallet in El Salvador. In addition, authorities around the world could start regulating Bitcoin more closely.
You can find an assessment of the SHAREHOLDER here: Bitcoin & Co: Severe setback – these brands are what count now
With material from dpa-AFX
Note on conflict of interests:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments referred to in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin, Ethereum.
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