A momentary setback on Tuesday hit Crypto markets which resulted in some of the most popular digital-assets registering double-digit losses, until staging a mini recovery.
As at last check, Market Watch showed that Bitcoin was changing hands $46,964.65, down 9.1% but had sunk to an intra-session 24-hour nadir at $42,921.27 on Coin Desk.
Ethereum, the number-two largest crypto by market value, was down 12% at $3,461.97, but had hit a low at $3,036.30.
There was no immediate catalysts for the sudden drop and its recovery, but investors also noted that Coinbase Global Inc., the U.S.’s largest crypto exchange, reported trading problems due to volume on its platform, strategists have said.
Coinbase reported that its technical problems had been resolved as of 1:40 p.m. Eastern Time,
The turmoil in digital assets comes as El Salvador officially became the first country in the world to make Bitcoin as legal tender, allowing Salvadorans to do everything from buy goods and services to paying taxes.
Fawad Razaqzada, market analyst at ThinkMarkets.com, reportedly said that the recovery in crypto coincided with a tweet from Salvadoran leader Nayib Bukele, who vowed to buy the decline in Bitcoin.
Razaqzada said Bitcoin’s struggle to stay above a price at $50,000, which some technical analysts view as a point of resistance, may provide some fodder for crypto skeptics and raise concern among digital-asset “Whether this will ignite fresh momentum buying remains to be seen. Bitcoin repeated failure to hold above $50,000 must be concerning some bullish investors,” the ThinkMarkets analyst was quoted as saying.