Bitcoin prices suffered a flash crash this morning, falling to their lowest level in nearly a month on the exact same day that El Salvador introduced Bitcoin as legal tender.
The world’s most popular digital currency hit $ 42,921.27 around 11:10 a.m. EDT. CoinDesk figures demonstrate.
At that point, the cryptocurrency, which opened over $ 52,000 today, had fallen more than 15% in an hour, according to additional CoinDesk data.
In addition, it was trading at its lowest level since August 9th.
After that sharp decline, the digital asset quickly rebounded, exceeding $ 47,000 within 20 minutes of hitting that multi-week low.
At the time of this writing, Bitcoin was trading at around $ 47,300, nearly 12% below its intraday high of around $ 52,900.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
The digital currency experienced these sharp price fluctuations on the very day El Salvador was supposed to introduce Bitcoin as legal tender.
Much has been made of this development celebration, as El Salvador was the first nation to use digital currency in this way.
However, some market watchers reacted rather lukewarm and stressed that the population of El Salvador smaller than that of New York City.
Kay Khemani, CEO at Spectre.ai, weighed this matter and how it could affect Bitcoin markets in the future.
“The effects of El Salvador’s introduction of BTC have largely been priced into Bitcoin history, but other developing countries that have followed them are not. This creates a number of potential and positive catalysts for long-term adoption. ”
“Although this decision is a very forward-looking step for El Salvador and Bitcoin alike, it is a double-edged sword, as no major economy will follow suit in the foreseeable future,” he predicted.
“Instead, El Salvador has become the proverbial test object, and large nations will examine whether the introduction of Bitcoin was worth it or not.”
“The ‘wait and see’ approach is the best game theory option and the one that is likely to be adopted,” added Khemani.
Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether and EOS.