The price action comes on the day El Salvador is set to adopt the largest cryptocurrency by market cap as legal tender, becoming the first country to do so. Bitcoin dropped as much as 16% on Tuesday morning. It was last down by about 8.5% and trading at $47,400.00, according to Coin Metrics. Early Tuesday El Salvador temporarily disabled Chivo, its government-run bitcoin wallet, to increase the capacity of the servers, which were hindering new users from installing it, President Nayib Bukele announced in a tweet at about 7:00 a.m. EST.
Bitcoin pared its mid-day losses to 11% at the time of publication, with the cryptocurrency hovering just above its 50-day moving average of about $46,000. In the run-up to today's official adoption of bitcoin, El Salvador purchased 400 bitcoins, and indicated that it plans to purchase "a lot more." Those purchases were worth about $20 million. Tuesday's sell-off in bitcoin and ether spilled over into other altcoins popular among crypto investors, with Cardano, dogecoin, and litecoin all plunging more than 14%.
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