El Salvador now holds over $21 million Bitcoin as BTC law comes into effect
- 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.
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.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
