Bitcoin and Ether Drop 17% as Massive Sells Beat Crypto on Day El Salvador Adopts Bitcoin as Legal Tender | Currency News | Financial and business news

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Andrew Kelly / Reuters

Bitcoin and ether fell on Tuesday, the same day El Salvador adopted crypto as legal tender. The popular cryptocurrency has gone from a high of around $ 52,000 to a low of around $ 44,000. Moving averages over 50 and 200 days. Sign up here for our daily newsletter, 10 things before the opening bell.

The price of bitcoin and ether plunged on Tuesday, the same day El Salvador officially adopted cryptocurrency as legal tender to combat persistent hyperinflation.

Bitcoin fell 17%, while the sell-off spread to other cryptos, including Ether, which fell 23% in transactions on Tuesday.

Bitcoin was trading near a key group of resistance levels of around $ 52,000 before plunging to a low of around $ 44,000. The cryptocurrency managed to find support at its rising 200-day moving average and quickly rebounded off that level.

Ether rose from around $ 4,000 to $ 3,200, both levels well above its 50- and 200-day moving averages. The crypto has cut its losses and was down around 12% at the time of publication.

Bitcoin reduced its midday losses to 11% at the time of publication, with the cryptocurrency sitting just above its 50-day moving average of around $ 46,000. In the run-up to official bitcoin adoption today, El Salvador has purchased 400 bitcoins and has indicated that it plans to purchase “a lot more.” These purchases were worth around $ 20 million.

To accelerate the adoption of bitcoin as a means of legal tender, El Salvador is reportedly using the crypto unicorn BitGo to encode its official bitcoin wallet. But not everyone in El Salvador has been wowed by the country’s bitcoin plans, with polls suggesting that 75% of Salvadorans have reservations about the plan.

Tuesday’s sale of bitcoin and ether spilled over to other altcoins popular among crypto investors, with cardano, dogecoin, and litecoin all plunging over 14%.

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