The cryptocurrency crash that began when El Salvador made bitcoin legal tender on Tuesday continues to turmoil markets on Wednesday.
As of 9:35AM ET, here’s how prices are looking at several of the biggest names in cryptocurrency:
- Bitcoin (CRYPTO: BTC) It is down 8.9% over the past 24 hours, according to data from Coindesk.
- Ethereum (CRYPTO: ETH) Slightly lower – down 9.2%.
- Dogecoin (CRYPTO: DOGE) It decreased by 13.3%.
- XRP (CRYPTO: XRP)The coin, closely related to Ripple, is suffering the worst of all, dropping 15.8%.
Most market experts continue to blame El Salvador for the crash, with Reuters reporting this morning, for example, that the Latin American country “ran into hurdles” in rolling out its Chivo digital wallet. Users reportedly had trouble registering with the app, and so “the government fired it… in order to connect to more servers and increase capacity.”
It is worrying that El Salvador’s problems may not be over yet. In a tweet yesterday, Salvadoran President Nepe Bukele warned that “not everything will be achieved in a day or month.”
And the problem of cryptocurrency investors in El Salvador was not the only problem yesterday. Multiple cryptocurrency exchanges – Coinbase GlobalAnd Kraken and Gemini among them – Reuters reports – they suffered delays, errors and issues that prevented transactions from being conducted properly yesterday, which will do nothing good for investor confidence in cryptocurrencies.
At the same time, The Wall Street Journal He notes that Bitcoin in particular has enjoyed a 70% price rally since late July, which “could have driven traders into profit taking” once things started to pull back on Tuesday. In other words, if investors are looking for an excuse to take the chips off the table and start counting profits until the turmoil is over, Tuesday gave them any number of excuses to do so. Moreover, today – even after yesterday’s short selling – bitcoin’s price is still up an astounding 56% from its July 20 lows, and up 360% from a year ago.
This is a huge amount of profit in search of a reason to sell. I wouldn’t be a bit surprised if investors keep looking for excuses to sell today.
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