Bitcoin dumps 9% even as Central American leaders endorse the asset
The price of bitcoin is dropping following the endorsement of the digital currency by Central American leaders. Last week, the presidents of Panama and Guatemala announced that they would be supporting bitcoin and blockchain technology. The announcement came at a conference on the future of the economy in Central America, which the presidents attended.
Since the end of 2017, bitcoin has plunged over 50% in value. The price of one coin is now worth less than half what it was worth last year. Even as bitcoin has continued to plunge, some of the world’s most powerful politicians have come to its defense. Central American leaders announced at a recent summit that they are excited about the potential of bitcoin and other cryptocurrencies.
Bitcoin, which has been melting down like a weak lollipop since the Spring, is getting a boost from the region’s leaders. Over the weekend, the presidents of Guatemala, Honduras and El Salvador, Jimmy Morales, Juan Orlando Hernandez and Salvador Sanchez Ceren, endorsed bitcoin as a legitimate means of payment for goods and services. These leaders have little sway in the larger world of cryptocurrencies, but they are significant in the smaller world of Central American politics and economics.
Bitcoin fell 9% Tuesday morning, even as Central American leaders went on a laser run this week, according to data from multiple sources. Sentiment is likely bearish, as the drop comes at a time when nation states are beginning to embrace the asset and analytics company MicroStrategy announced a $400 million private bond round to buy more bitcoin.
Bitcoin for all
El Salvador’s president, Nayib Buquele, said over the weekend that the country will accept bitcoin as legal tender and will soon send an official proposal to the local Congress. Buchele further said in his tweet that there would be no capital gains tax on bitcoin and that all crypto entrepreneurs would be granted permanent residency. 1. Great weather, world class surf beaches, beachfront property for sale. 2. One of the few countries in the world where there is no property tax. 3. No capital gains tax in #Bitcoin because it will be legal tender. 4. Immediate permanent residency for cryptocurrency entrepreneurs. https://t.co/j3eugJQCMd – Nayib Bukele (@nayibbukele) June 6, 2021 Other Central American leaders soon joined the chorus. A Panamanian official spoke out this morning and proposed legislation for bitcoin in the country. A Panamanian politician has tweeted that he plans to propose legislation to allow the country to adopt bitcoin and cryptocurrencies. El Salvador’s announcement led to a wave of statements from other countries supporting this new digital and decentralized world. – Pomp (@APompliano) 7. June 2021 South American officials are not far behind. Just yesterday, Carlitos Rehala, a member of Paraguay’s National Congress, said that bitcoin is going to the moon and that the country needs to walk hand in hand with the new generation to keep up. We begin this week with a valuable project that will renew Paraguay for the world, Rehala said on Twitter, adding at the end of his announcement: #btc & #paypal.
The market reacts in reverse
The data shows that bitcoin has lost $3,000 this morning and is down to $32,220. Since then, the price has risen to $33,171, but it is trading below the 34-period moving average, a well-known tool for traders that uses the average of recent prices to determine market trends. Image: BTC/USD via TradingView. Earlier, bitcoin had failed to break through the resistance level of $36,000. As a result, the company’s market value has fallen by another $600 billion (it was over $1.2 trillion in April 2021). Meanwhile, some merchants were crying. Data from analysis tool Bybt shows that bitcoin traders liquidated $433 million in the past 12 hours alone, and futures liquidations across the cryptocurrency market totaled more than $1 billion.
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Bitcoin dumped 9% yesterday after a day of wild swings in the cryptocurrency’s value, amid growing unease about the asset’s viability. Market uncertainty has grown amid signs that the world’s largest cryptocurrency is facing growing attacks from regulators. Despite being hailed by some as a cure for the world’s financial woes, bitcoin’s fallback performance yesterday suggests that the cryptocurrency is in fact a risky bet.. Read more about bitcoin sunday dump and let us know what you think.
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