Bitcoin (BTC) holders took profits on Tuesday, but every bit El salvador moved to recognize the digital currency as legal tender in a landmark move that could have significant implications for global adoption.

Later hit local highs north of $52,800 on Monday, Bitcoin'south price plunged all the way to $42,900 in Tuesday trading, according to Cointelegraph Markets Pro. Peak to trough, the flagship cryptocurrency plunged almost xix% over the previous 24 hours.

BTC price appears to take bounced off the intraday low of $42,900. Information technology was last seen trading but below $47,000. Source: Cointelegraph Markets Pro

Salvadoran President Nayib Bukele confirmed that his regime bought the dip by snatching up 150 BTC during the depths of the selloff. As Cointelegraph reported, El Salvador fabricated its commencement BTC purchase Monday on the eve of the Bitcoin Law coming into effect. The initial purchase of 200 BTC was valued at roughly $10.four million.

Less than 5 minutes subsequently the initial buy-the-dip tweet, Bukele said that the "discount is catastrophe" for Bitcoin. He also thanked the International Budgetary Fund, or IMF, for helping his country "salve a million in printed paper" on his government'due south Bitcoin buy. For context, the IMF has come out against Republic of el salvador'south Bitcoin foray. Its warnings about the state's embrace of crypto may have contributed to the recent bout of market volatility.

El Salvador now holds 550 BTC, worth roughly $28.8 million at electric current prices.

Related: Bank of America outlines 4 potential benefits of Republic of el salvador's Bitcoin strategy

Volatility is aught new for the cryptocurrency market. The commonage market capitalization of all coins was cut in one-half between May and July every bit a combination of technical trading, turn a profit-taking and fearfulness-inducing headlines dragged Bitcoin from a high near $65,000 all the way dorsum downwardly to $29,000. The marketplace has staged an impressive recovery over the by month, with Bitcoin reclaiming $50,000, Ether (ETH) hit $4,000 and the total market cap climbing back above $ii.4 trillion.