Bitcoin took losses today after tumbling amid El Salvador's troubled adoption of the largest cryptocurrency as legal tender.
According to Arab Net, Bitcoin was trading at around $47,100 in the morning in Singapore, after falling as much as 17% the day before, before paring some losses.
Cryptotokens such as Ether and Dogecoin have also been hit by the landing.
El Salvador's experience with Bitcoin, the largest test of the world's true cryptocurrency utility, was made difficult by technical vulnerabilities in the official digital wallet, which later appeared to be resolved .
President Najib Bukila said on Twitter that the country now owns 550 bitcoins after buying them when the price fell.
Tuesday's sell-off is the most significant breakout in the rebound that has lifted Bitcoin nearly 75% since late July. The total cryptocurrency market cap has fallen by nearly $280 billion in the past 24 hours, according to crypto tracker CoinGecko.
About $3.7 billion of cryptocurrency divestitures occurred during the same period, according to Bybt.com. This occurs when leveraged positions are closed by exchanges for failing to meet margin requirements.
Billionaire Mike Novogratz, CEO of Galaxy Digital Holdings, said the cryptocurrency market has been running aggressively for the past eight weeks and is in overbought territory, adding that interest of retail investors rose as large institutions jumped on the cryptocurrency bandwagon, Bloomberg reports.
Edward Moya, chief market analyst at Oanda Corp, argued in a note that Bitcoin's fundamentals remain intact, as prices set a new trading range between 46000 and 53000 levels. dollars.
While El Salvador's rollout may be a cause of bitcoin's volatility, other variables could also play a role in the notoriously volatile cryptocurrency sector. In particular, the prospect of lowering stimulus by the Federal Reserve presents a challenge to speculative assets such as crypto tokens.
