Bitcoin collapses below $ 43,000 the same day it becomes legal tender in El Salvador

The price of bitcoin suffered a lightning crash this morning, dropping to its lowest level in nearly a month on the same day El Salvador adopted bitcoin as legal tender.

Following this sharp decline, digital assets quickly recovered, surpassing $ 47,000 within 20 minutes of hitting this multi-week low.

At the time of writing, bitcoin is trading at around $ 47,300, almost 12% below its intraday high of around $ 52,900.

Bitcoin experienced these sharp price swings on the very day that El Salvador was to adopt bitcoin as legal tender.

This development was greeted with great enthusiasm, with El Salvador being the first nation to exploit digital currency in this way.

However, some market watchers had a more mixed reaction, pointing out that El Salvador’s population is smaller than that of New York City.

Kay Khemani, Managing Director of Spectre.ai, has spoken out on this issue, as well as how it might affect bitcoin markets in the future.

“The impact of the adoption of BTC by El Salvador is widely reflected in the history of bitcoin, but that is not the case for other developing countries following its lead. This creates a series of potential and positive catalysts for long-term adoption.”

“While this move is a very forward-looking move for both El Salvador and bitcoin, it is a double-edged sword as no big economy will follow anytime soon.“, He predicted.

“Instead, El Salvador has become the proverbial essay subject, and major nations will be looking into whether adopting Bitcoin is worth it or not.”

“The “wait and see” approach is the best theoretical game option and one that is likely to be adopted.“, Added Kay Khemani.