After weeks of constant turbulence in price, constantly bouncing up and down, Bitcoin can’t seem to catch a break. But all that seems to be changing given the recent uptrend by 5 percent, with a three-day rising pattern showing a link between the most famous cryptocurrency and the news announcement related to El Salvador looking to officiate crypto as legal tender. Along with this headline-breaking news in the crypto world announced on Thursday evening, the president of El Salvador promised to gift every citizen an e-wallet worth $30.
The world’s all-star crypto experienced an upward movement. It was up by 5 percent over 24 hours, after the $29k rebound, induced by the news related to the People’s Bank of China and the reiterated crypto banking ban, all part of the major crackdown on crypto mining currently taking place in China. After this news, it is most likely that the famous cryptocurrency will be range-bound between $30k and $41k marks.
El Salvador Crypto Law
But all that changed after the announcement made by Nayib Bukele, president of El Salvador, when a rise in Bitcoin price coincided with the national address regarding the new crypto law on Thursday evening. In addition to that, Bukele announced to his citizens that they would receive $30 in BTC after signing up for the Chivo e-wallet. Everyone who downloads the app gets the gift, as per information found on elsalvador.com. Facial recognition is all that it’s needed to receive the promised amount.
The controversial crypto law will come into effect on September 7th, as per the words of El Salvador’s president. June 9th welcomed the passing of the new law by a supermajority in El Salvador’s legislature. Sixty-two members voted for the bill, 19 were opposed, and some of them abstained.
El Salvador’s Bitcoin Law would allow Bitcoin to become legal tender, meaning that merchants would have to accept it as a payment method, along with the U.S. dollar. On the other hand, the political opposition of El Salvador strongly opposes the newly legislated law, with claims of constitution violations. The resistance went so far that a deputy of El Salvador’s opposition party sued the country and a group of citizens, citing the law’s harmful effects.
Other Markets and News
While this news may lift investor’s spirits up regarding Bitcoin price, long-term shadows such as the China crackdown and the U.S. Federal Reserve’s aggressive tilt toward interest rates continue to disrupt BTC price stability.
In the meantime, traditional markets correlate with Bitcoin price and often experienced more substantial gains. Positive news involves a bipartisan Senate group comprising five Republicans and five Democrats, along with Joe Biden, the U.S. President. The parties reached a tentative agreement involving a $579 million infrastructure plan after negotiating for weeks. This news helped drive the stocks of equipment and building companies upon publishing the information.
Experts believe that Bitcoin will, thanks to the current event and for now, stay range-bound between the $30k and $41k mark. The only thing we are left to do now is paying attention to the unfolding of this newly imposed situation and follow the market’s pulse along with the news.