El Salvador’s experiment using Bitcoin as legal tender had a rocky start as its price crashed on its first day as legal tender, while the roll-out was hampered by technical glitches.
The cryptocurrency plunged as much as 17% to its lowest level in a month amid news that the government disconnected its Bitcoin wallet early on Tuesday to fix problems, and said they are running tests to make it available for download later in the day.
The largest cryptocurrency fell as low as $43,050 in New York Tuesday, before paring losses. El Salvador President Nayib Bukele said his country had taken advantage of the crash to “buy the dip”, adding 150 coins to take its total holding to 550, worth about $26 million.
The Bloomberg Galaxy Crypto Index, which tracks some of the largest cryptos, lost as much as 19%, while other smaller digital assets also sold off.