Bitcoin Validation In El Salvador Marked By Drop In Crypto Prices

The approval of Bitcoin as a means of payment in El Salvador was marked by the decline in crypto prices in the world. (photo: doc. unsplash)

JAKARTA – Cryptocurrency prices plunged and crypto trading was suspended on Tuesday, September 7, the day El Salvador hit a snag as the first country to adopt bitcoin as a legal tender.

Shares of blockchain-related companies also fell as crypto stocks were hit by the trading platform shutdown. But the main focus is on El Salvador, where the government has had to temporarily revoke digital wallets to cope with demand.

Meanwhile, the President of El Salvador, Nayib Bukele, continues to promote Chivo Wallet as a digital wallet that is recognized in his country, which is now the number one application in the AppStore and play store.

Number 1 finance app in the @AppStore:@chivowallet

In just 8 hours!#BitcoinDay #BTC🇸🇻 pic.twitter.com/pJpmpEr7ZS

— Nayib Bukele 🇸🇻 (@nayibbukele) September 8, 2021

Bitcoin, the world's largest and most popular cryptocurrency, fell more than 17% to $43.000 before paring some of its losses to trade down 9.20% at $47.140.27. Bitcoin had previously hit a session high of 52.948.00 on Monday.

Ether's smaller rival, a coin connected to the ethereum blockchain network, was also down 11.99%.

Major cryptocurrency exchanges such as Coinbase Global Inc and Kraken said they were facing delays in some transactions on their platforms.

Coinbase said some transactions were delayed or canceled at "higher rates" and that "our app may have encountered an error." The exchange later said the issue with Coinbase card swipes was resolved and transactions were proceeding normally.

Gemini exchange said it is temporarily entering a full maintenance period to address any exchange-related issues that are causing performance issues.

Anything related to cryptocurrencies seems to suffer on that day. Cryptocurrency miner Riot Blockchain fell 7.38% and Marathon Digital Holdings slipped 7.76%.

Shares of MicroStrategy Inc, a BTC buyer, and business intelligence software company, also fell 7.64 percent.