Sharp drop in Bitcoin: it lost more than 15% over the day

The expected “D-Day” for Bitcoin It did not go in the best possible way or at least as expected by market analysts. The world’s most widely used cryptocurrency has gone through a period of extraordinary price recovery in recent weeks, hitting its highest values ​​since May at $ 52,000.

This Tuesday, the wait was placed on the The beginnings of Bitcoin as an official currency in El Salvador. If it is true that the economy of the small country of Central America does not have much influence in the global concert, the fact of being the first country to have officially integrated “crypto” as legal tender gave a solid bullish base to this show.

But this afternoon the market reaction has been surprising and untimely. The Bitcoin fell 15% and lost almost $ 6,000, to return to $ 46,000. Thus, the virtual currency is still far from its best prices, reached in mid-April, around 65,000 dollars.

The Savior this Tuesday became the first country in the world through which Bitcoin circulates as legal tender, a experience that seeks to reduce the cost of remittances sent from abroad and which in the first hours suffered an interruption to resolve a technical limitation.

The measure led by the young and popular president Here to watch, 40, aims to enable children to Salvadorians save the $ 400 million they spend on commissions each year by remittances, primarily from the United States.

Last year alone, remittances to El Salvador amounted to nearly $ 6 billion, or 23% of its gross domestic product, one of the highest proportions in the world.

Polls show that the majority of Salvadorians are skeptical about the use of Bitcoin and they are wary of the volatility of the cryptocurrency which critics of the initiative say could boost the money laundering and growing risks for financial institutions. However, some citizens are optimistic.

El Salvador on Tuesday became the first country in the world through which Bitcoin circulates as legal tender

“We have family in the United States, they can send there and without charge, instead the bank makes them pay (…) to send money from the United States to El Salvador”, a- he declared. Reuters Reina Isabel Aguilar, owner of a store in Playa Zonte, about 49 kilometers southwest of the capital San Salvador.

El Zonte is part of an experiment called “Bitcoin Beach” destined to make the coastal city one of the world’s first Bitcoin savings.

In anticipation of the launch, the government has already installed ATMs from its digital wallet called “CHIVO”, which will convert the cryptocurrency into dollars and withdraw it without a commission.

A few hours after starting the service, it must have been interrupted by the “Installation problems” which has had a few users, Bukele revealed on his Twitter account on Tuesday.

“Any data they are trying to enter at that time will give them an error. The system is disconnected while the capacity of the servers is increased. This is a relatively simple problem, but it cannot be solved with the connected system, ”he explained. . “Better slowly and with good words,” he added.

In the early hours of Tuesday, the Salvadoran digital wallet had failed to appear on the app download platforms of Apple Inc, Google and Huawei, prompting a series of tweets from Bukele, including one with an “angry emoticon” “red-faced.

On Monday, the president asked for patience in trying to moderate expectations of quick results.

“Like any innovation, The #Bitcoin process in El Salvador has a learning curve. Every road to the future is like this and not everything will happen in a day, or in a month, ”explained Bukele on Twitter, a platform he often uses to express himself, report his achievements or criticize his opponents. .

At Eve, El Salvador bought its first 400 Bitcoins, which momentarily increased the price of the cryptocurrency by more than 1.5%, to $ 52,700. The currency has been notoriously volatile. In April, it rose to over $ 64,000 and fell to $ 30,000 in May.

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