El Salvador's president, Nayib Bukele, is trying to put a brave face on things.
Bitcoin has plunged sharply — hours after El Salvador embraced the cryptocurrency as legal tender.
In a stomach-churning fall, BTC went from $50,767.43 to $44,672.66 in the space of an hour — down 12%.
This is one of the worst daily performances seen this year, rivalled only by a bruising session in May when Bitcoin closed down 14.4% on the day.
There’s little doubt that the crash will cast a dark shadow over Bitcoin Day, and cause alarm among Salvadoran consumers who are now being encouraged to use the cryptocurrency to pay for everyday items.
A few hours ago, the government’s official Chivo app was beset by technical difficulties too — causing it to be temporarily taken offline.
But El Salvador’s president, Nayib Bukele, has been attempting to put a brave face on the situation — announcing that his government is “buying the dip” by adding 150 BTC to its reserves.
Baptism of Fire
The dramatic market moves, which have been blamed on whales who own large amounts of Bitcoin, could serve as vindication for those who were protesting on the streets of El Salvador — concerned about the cryptocurrency’s volatility.
And inevitably, the rush of activity has caused disruption on a number of crypto exchanges, making it challenging for crypto investors to exit their positions.
Those who have downloaded the Chivo app in El Salvadoer have been rewarded with $30 in Bitcoin, but today’s wild swings mean this could now be worth as little as $25.
