Bitcoin fail and falls in El Salvador

Bitcoin falls below $ 43,000 on its first day of use in El Salvador as a national currency

It’s a volatile day for bitcoin , a cryptocurrency that briefly fell 10% on Tuesday, below $ 43,000.

The drop comes after El Salvador complied with a plan announced in June and adopted cryptocurrency as legal tender, becoming the first country in the world to do so.

That’s good news for bitcoin integration. But the cryptocurrency fell Tuesday on the “buy the rumor, sell the news” phenomenon related to Salvadoran politics that is finally brewing, said Edward Moya, a senior market analyst at Oanda.

The Central American nation had previously bought 200 bitcoins and bought another 200 on Monday night – before formal adoption – and another 150 more on Tuesday, bringing the country’s total to 550 bitcoins. El Salvador will also give residents US $ 30 in bitcoins with the download of the ” Chivo Wallet ” app , a state-run digital wallet created to incentivize citizens to try crypto payments.

Bitcoin had traded as high as nearly $ 53,000 per coin on Monday.

When the New York Stock Exchange opened on Tuesday, the digital currency was more or less stable, and by noon it had fallen to a low of $ 42,921, according to data from CoinDesk around noon he was “buying the dip”.

Since then, the cryptocurrency has broken out of its lows, although it remains at a 9.2% decline. Bukele tweeted that “it looks like the discount is ending.”

If you are a newcomer and you are thinking of entering this market, experts indicate that it is necessary that you do it with caution and education. “Many digital currencies have different use cases, and you must understand the value proposition of a potential investment before committing capital,” Grayscale Investments CEO Michael Sonnenshein told CNN.