The cryptocurrency market received unexpected but welcomed support from the government of El Salvador, which approved Bitcoin as an official means of payment. Although this is a precedent in world practice, this decision was made by a very small country with a small economy. The official currencies of the country are now the U.S. dollar and Bitcoin. This is very symbolic and an epic progression for crypto-enthusiasts.

Of course, Bitcoin is not adopted by one of the leading economies like Sweden or Britain; nevertheless, authorities of the major central banks may take this event very seriously, though they won't show their concern publicly. Yesterday we saw a precedent where the competition with national currencies became really tangible. And Bitcoin's reaction was very fast: BTC has added more than 10% in the past 24 hours, encouraging retail investors to buy.

On the technical analysis side, Bitcoin received unusually timely support as it once again tested its 200-day moving average. This local victory may potentially cool the bears, who have been persistently pushing down Bitcoin for the last two months. But it's too early to talk about a victory for the bulls: BTCUSD needs to consolidate above $40K and develop growth from this level to finally break away from the bearish trend.

As a pioneer in introducing cryptocurrency as official means of payment, El Salvador may well be intent on becoming a cryptocurrency offshore at a time when tax havens are under increasing pressure. In fact, tax havens are becoming a thing of the past, and the corporate tax rate has trended toward equalization on a global level.

Smaller third-world countries are preparing to take this chance to attract quiet capital and crypto-millionaires who risked being exposed because of the widespread tax transparency. If this is the factor at play, Bitcoin is poised for impressive long-term growth.

Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Ripple bulls respite to end with blast off to $0.98

XRP price saw a healthy run-up after bleeding excessively over the past three weeks. Investors seem to be booking profits, which has stifled the recent run-up. If this continues, Ripple could bounce off two crucial support levels and restart its uptrend.

More Ripple News

Cardano eyes 25% gains despite recent slowdown

Cardano price shows a bullish structure despite the mayhem caused in late May. ADA set up a higher low on June 8, followed by a quick upswing, a common theme across the crypto market.

More Cardano News

Polygon might retrace before rallying 25%

MATIC price experienced a minor upswing on Wednesday but failed to entice the sidelined investors to jump on board. Additionally, Polygon did not retest a crucial supply barrier during this uptrend, which could indicate that a minor retracement seems likely.

More Polygon News

Three reasons why Shiba Inu price may be ready to rally

Since June, Shiba Inu price has been locked in a descending channel but holding the outstanding May 19 support during the new selling wave in the cryptocurrency complex. The resulting bounce has stalled at the apex line of a previous symmetrical triangle, a level that served as support in late May.

More Shiba News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP