• El Salvador’s Bitcoin legislation will come into effect on September 7, as the country moves to adopt the cryptocurrency as legal tender.
  • A $150 million Bitcoin fund was set up last week to facilitate conversions between BTC and the greenback.
  • Although the new law has sparked protests, President Nayib Bukele continues on with a 400 Bitcoin purchase ahead of the deadline.

El Salvador has confirmed the purchase of its first 400 Bitcoins just ahead of the new crypto legislation approaching. President Nayib Bukele revealed that the country would be continuing to buy more of the leading cryptocurrency as the deadline approaches on September 7.

El Salvador buys 400 Bitcoin despite protests in the country

Last week, a $150 million Bitcoin trust was introduced to support transactions between Bitcoin to the country’s national currency, the US dollar. El Salvador became the first country in the world to recognize the bellwether cryptocurrency as legal tender.

200 Bitcoin has been purchased ahead of the new legislation coming into effect, and president Bukele said that the country’s brokers would be buying more BTC as the deadline approaches. 

The Latin American country’s move to adopt Bitcoin as a national currency may have been praised in the cryptocurrency community, many Salvadorans have raised concerns about the use of the digital asset for illicit activities in the region. 

Protests have erupted in El Salvador just weeks ahead of the legislation coming into effect, as many believe that the move involves risk in an already struggling economy. Due to the fact that Bitcoin is a volatile currency, citizens worry about its instability.

A previous governor of El Salvador’s central bank said that adopting Bitcoin as legal tender puts its citizens “on a roller coaster.” Stanley Quinteros, a member of the Supreme Court of Justice’s workers’ union highlighted that the move is nearly universally opposed by Salvadorans, and appeals to those interested in corruption.

Despite the backlash from citizens, the new Bitcoin law is set to move forward on September 7, which would give Salvadorans the ability to hold the cryptocurrency as part of their long-term strategy or withdraw it in the form of cash at ATMs installed in the country. 

El Salvador further built a Bitcoin wallet known as Chivo, which would allow citizens who live abroad to send money back home to their families with reduced remittance costs. President Bukele previously announced that the Chivo Wallet is ready to be used as soon as the new law comes into effect. 

Bitcoin price indicates the bulls are back

Bitcoin price has recently broken out of a symmetrical triangle on the 4-hour chart, nearly reaching its measured target of an 8% ascent from the upper boundary of the technical pattern.

The leading cryptocurrency has a bullish target of $53,000, and Bitcoin price is just 0.33% shy of reaching the optimistic goal. 

The next target for Bitcoin price appears to be at the 78.6% Fibonacci extension level at $56,955 should the buyers continue to push BTC higher.

BTCUSDT

BTC/USDT 4-hour chart

Should Bitcoin price see a retracement following the recent climb, BTC would discover meaningful support at the 61.8% Fibonacci extension level, coinciding with the 20 four-hour Simple Moving Average (SMA) at $50,938.

Further support will emerge at the 50 four-hour SMA at $49,426 should selling pressure arise. 

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP