The price of bitcoin has plummeted tonight after breaking $ 52,000 at the end of Monday, reaching its highest level since May.
This price drop came on the day El Salvador was set to implement Bitcoin as a ‘legal tender’. With this, El Salvador became the first country to take such a bold step. Bitcoin has just fallen 16% and is trading at $ 43,228.11.
Leah Wald, CEO of Valkryie Investments thinks some investors reacted to the news. Wald opined that when the move was first announced it did not have as big an impact on prices as some had hoped. This may be due to the lack of cakna from the outside population. However, it should be noted that the country of El Salvador has a high poverty rate and not many people have internet access or a smartphone to participate in the use of bitcoin.
As part of the new law, businesses will be required to accept bitcoin as a transaction of obtaining goods and services except those unable to adopt the technology.
The country has bought 400 bitcoins worth about $ 20 million and channeled $ 30 to registered Salvadorans.
This string has emerged a movement calling on people to buy $ 30 worth of bitcoin in their local fiat currency to commemorate El Salvador’s new law. The plan is to encourage people to buy bitcoin rather than to 'pump' the price of bitcoin according to analysts.
“What’s most worth noting is whether neighboring countries in Latin America or other countries in the world, are starting to use bitcoin as their national currency as well,” Wald said.
“If this happens, that’s when we can see higher parabolic movements, because the momentum gained from the millions of people who have instant access to crypto will generate more holdings and at the same time drive up prices.
On Monday, Panamanian politician Gabriel Silva introduced the “Law of Crypto,” which aims to make Panama a country that keeps pace with the development of blockchain, crypto and internet technologies.
So far the BTC price has traded $ 46,696.32 with a fall of almost 10% in 24 hours.
