El Salvador legalized Bitcoin and Ether on the same day, yet both lost 17% and 23%, respectively. The value drop is significant. After falling to nearly $44,000, Bitcoin found support at its 200-day moving average. Bitcoin was sold for $52,000.
Ether dropped from $4,000 to $3,200 before recovering. El Salvador’s $20 million purchase of 400 bitcoins before its debut didn’t stop the market sell-off. Polls show that 75% of El Salvadorans are worried, making cryptocurrency adoption difficult.
- After El Salvador legalized Crypto Batter, Bitcoin and Ether plummeted.
- After hitting around $52,000, the popular cryptocurrency plummeted from over $44,000.
- Bitcoin regained some losses throughout the trading session and is above its 50-day and 200-day moving averages.
Bitcoin and Ether fell on Tuesday. El Salvador legalized cryptocurrency on the same day to fight hyperinflation. Due to the sell-off, Ether and other cryptocurrencies lost up to 23% on Tuesday. Bitcoin fell 17%.
Before falling below $44,000, Bitcoin was approaching a cluster of resistance levels at $52,000. The cryptocurrency immediately rose off its rising 200-day moving average after failing to find support elsewhere.
Ether has dropped from above $4,000 to $3,200, well above its 50- and 200-day moving averages. The cryptocurrency was down 12% despite a bit of recovery.
Bitcoin was trading barely over its 50-day moving average, $46,000, and had cut its losses from the middle of the day to 11%. Before bitcoin adoption, El Salvador acquired 400 bitcoins and planned to buy “a lot more.” These purchases cost around $20 million.
El Salvador is hiring BitGo to construct its official Bitcoin wallet to speed up Bitcoin’s legalization. Only some people in El Salvador support the country’s bitcoin plans. Many Salvadorans oppose the idea, according to research.
On Tuesday, bitcoin and Ether sold down, causing Cardano, Dogecoin, and Litecoin to tumble over 14%. Popular cryptocurrency with crypto investors also fell.
Final Thoughts
As El Salvador legalized Bitcoin, the cryptocurrency market plummeted by 17% and Ether 23%. The sudden decline in value, which affected Litecoin, Cardano, and Dogecoin, shows how fickle the cryptocurrency market is. Bitcoin recovered after sliding from $52,000 to $44,000. Support around its 200-day moving average helped Bitcoin recover.
Ether plunged from $4,000 to $3,200, although it has since recovered. El Salvador’s $20 million purchase of 400 bitcoins to boost cryptocurrency adoption failed to prevent the market slump. Since 75% of Salvadorans are concerned, integrating cryptocurrencies into a national banking system takes time and effort. This further obscures El Salvador’s revolutionary endeavor.
