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

Crypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies News

MATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC News

AVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News

XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar News


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