El Salvador set to adopt Bitcoin as legal tender on September 7, promises $30 worth BTC to all its citizens
The cryptocurrency market tanked 8 per cent in the 24 hour period ending 9 am IST today. This was along expected lines, given the huge options expiry ($7 billion worth) on Friday. Bitcoin (BTC) continues to enjoy support in the $31-32K range. All top cryptocurrencies have declined at least 6 per cent, with Dogecoin dropping 14 per cent, after a strong growth of 25 per cent the previous day.
The total market is at $1.3 trillion today, 35 per cent down from previous high earlier this year. The market continues to exhibit bullish undercurrents even as strong adoption news comes from El Salvador, which is set to adopt Bitcoin as legal tender on September 7 this year. The country has also promised $30 worth BTC to all its citizens instantly, creating a 2.5 per cent additional BTC userbase globally.
Bitcoin fell below $30K for the first time in 2021 earlier this week, amid concerns regarding clampdown of BTC mining in China. Bitcoin is imitating the Wyckoff pattern, and support levels of $31-32K are critical to negate a bigger drop later this month. Most altcoins continue to exhibit sentiments similar to that of BTC.
However, if BTC breaches the $35K resistance level, it could lead to further growth over the next two weeks, as it rallies back to $40-42K levels. Altcoins, including Ethereum (ETH), have the potential to grow disproportionately in such a scenario, extending the bull cycle witnessed in the last 8 months.
We expect a good recovery from Monday onwards. BTC’s price movements will continue to determine the overall shape of the market in the medium term.
Top Gainers today:
- Celo (CELO) – 7.2%
- Quant (QNT) – 5.6%
- Waves (WAVES) – 2.9%
Top Losers today:
- THORChain (RUNE) – 16.7%
- BakeryToken (BAKE) – 16.2%
- NEAR Protocol (NEAR) – 14.3%
Source: CoinMarketCap
Note: Analysis of top 100 coins only
Other Crypto News at a Glance
- Microstrategy, a strong institutional investor of BTC, has meanwhile added another $500M worth BTC to its portfolio this week, raising its overall BTC holdings to more than $3B.
- China’s clampdown on BTC mining rigs has enforced a shift in miners who are looking at alternate countries as their base.
- Chainalysis, which provides blockchain analysis software that tracks exchanges, government agencies and financial institutions, has raised $100M in the latest funding round taking its valuation to $4B.
- Charles Hoskinson, co-founder of Ethereum, has supported Dogecoin suggesting that it is a reasonable target to fix and make it interesting.
- Elon Musk’s support tweet for SHIBA INU (SHIB) coin sparked a mid-day gain of 25% though excitement didn’t last. SHIB ended with 0.3% gain in the 24 hour period.