Bitcoin Price Recovers After El Salvador Adoption & Sharp Drop

NEW DELHI: The price of the Bitcoin nosedived to $44,000 on September 7, following the adoption of the cryptocurrency as legal tender in El Salvador. Bitcoin’s price plummeted almost 15 per cent within an hour of being rolled out in El Salvador from its peak value of $52,000 on Monday.
Bitcoin’s crash affected other leading altcoins such as Ethereum, Cardano and Dogecoin bringing down the worth of the global crypto market to $2.03 trillion, 11 per cent lower than the previous day. Despite Bitcoin’s steep price drop, crypto-assets like Solana(SOL), Fantom(FTM) and Near (NEAR) were the ones least affected, and in fact, had double-digit 24 hours returns.
Nevertheless, the price of Bitcoin has slowly stabilized after Tuesday’s sudden crash, as it continues to be hovering around $46,000, $2000 above than the lowest price it had hit. The global crypto market has also recovered, albeit, slightly by 1 percent since Wednesday, 8th September according to a report in The Independent.
However crypto analysts believe that it could be a pseudo dip and expect Bitcoin to retain its earlier value by even next week, The Independent reports. They believe that buying more altcoins and bitcoin could turn out profitable now, as the short-term price trajectory does not have an effect on the long-term investment.
The crash in Bitcoin price happened on the very first day of El Salvador’s adoption, owing to the difficult beginning it had in this country. The Bitcoin was launched amidst strong opposition, of some citizens as well as platforms like Apple and Huawei, who did not offer government-backed wallet Chivo at the time. Consequently, technical glitches followed and servers had to be pulled offline after they couldn't keep up with user registration and the official digital wallet was disconnected from 1am to 6pm to fix the bug.
However, El Salvador, taking advantage of low Bitcoin prices, bought more coins, and now holds 550 bitcoins. Nayib Bukele, the President said that businesses will be required to accept Bitcoin for exchange of goods and services, except the ones who are technologically incapable.
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