Bitcoin suffered its biggest daily losses on Tuesday since its plunge in May, wiping out $ 5,000 in minutes, as El Salvador has officially adopted cryptocurrency as its official currency.
Read also Bitcoin becomes a currency in El Salvador
Around 4:15 p.m. GMT (6:15 p.m. in Paris), bitcoin fell 9% to $ 47,225, wiping out much of its gains in recent weeks.
"
Bitcoin is declining in reaction to a phenomenon of buying rumor, selling information,
" comments Edward Moya, analyst at Oanda: investors had bought the cryptocurrency before the official announcement of El Salvador and are now separating from it to earn benefits.
Bounce back after a tweet from the President of El Salvador
Cryptocurrency enthusiasts had also called on their community to buy "
30 dollars of bitcoin
" in the last few days to inflate the course.
"
It is this volatility that makes many people pessimistic in El Salvador,
" recalls Susannah Streeter, analyst at Hargreaves Lansdown.
While cryptocurrency lost more than 17% during the session, "
bitcoin recovered after a tweet from the President of El Salvador,
" said Fawad Razaqzada, analyst at ThinkMarkets.
Read also Bitcoin, a new El Dorado for young French people
Nayib Bukele thus affirmed that his country had "
bought in the bottom of the wave
", seeing in the plunge of the courses the opportunity to shop cheaply: according to him, El Salvador now has 450 bitcoins, for a value of 'just under $ 22 million. "
Will this be enough to relaunch the rise in cryptocurrencies, it remains to be seen,
" notes Fawad Razaqzada, who notes that bitcoin is struggling to stay above $ 50,000 for a long time.
