What happens in El Salvador has an impact on Bitcoin’s ascent to new highs?


El Salvador became the first country to legalize bitcoin on September 7, this year, making it the first country to do so.

While the move advanced the narrative of Bitcoin and the larger crypto market in terms of mass adoption, it also sparked a wave of speculation in El Salvador from both the opposition and citizens.

Thousands of Salvadorans took to the streets in the nation’s capital on October 18 to protest the leadership’s economic policies, including the decision to make BTC legal tender in the country. Protesters chanted slogans such as “Bitcoin is a fraud” and “No to dictatorship,” while Bukele appeared to downplay the outpouring of dissent. But what would happen to Bitcoin if these ideologies clashed?

The year 2021 was a year of extreme highs and lows caused by global macro-events and FUDs that fueled the momentum of space, primarily BTC. Clearly, Bitcoin’s price had been heavily influenced by social sentiment throughout the year.

Notably, when El Salvador’s Legislative Assembly passed the Bitcoin Law on June 8, BTC’s price increased by nearly 25% in the following three to four days. The El-Salvador hype, on the other hand, had little effect on the price, with BTC falling below $30K in the following two weeks.

Similarly, Bitcoin’s price plummeted after it was designated as legal tender in El Salvador on September 7. Its price dropped by nearly 18 percent, as did the broader market, as a result of a flash crash.

So, while the El Salvador hype pushed the narrative in terms of mass adoption, it did not have the expected effect on BTC’s price. Nonetheless, at the time of writing, anticipation of a new BTC price ATH was high, as was the hope of a BTC ETF; will these protests have an impact on BTC’s global status? That is why it is critical to examine the El Salvador BTC fiasco and what it entails.

Bukele hoped that the adoption of BTC in El Salvador would help the country retain the more than $400 million in financial fees lost when Salvadorans send remittances… Brinkwire short summary.


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