Historical Date When BTC Was Officially Accepted

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2021-11-26 06:51:52

Bitcoin officially becomes the national currency of El Salvardo

BTC correction after more than 1.5 months of continuous growth is understandable. This is also the correction that many long-term investors wait to be able to buy the average entry price. Bitcoin also corrected on the first day El Salvador became the first country to officially accept BTC.

This event is something that many large units such as the International Monetary Fund (IMF), the World Bank (World Bank), the US government, Europe, … do not want. Several times El Salvador has been warned by the IMF if the country accepts Bitcoin as its national currency.

El Salvador is a country that does not have its own fiat currency, but they are using the USD currency as a means of transaction. As a result, there will be disadvantages, making this country dependent on the great influence of the US dollar. This is one of the reasons why El Salvador chose BTC as a legal currency. Although El Salvador does not regulate BTC, it is not regulated by any government.

Next, the country of Panama also introduced a bill to regulate cryptocurrencies. This is a new bill in Panama that recognizes Bitcoin as an alternative payment method and allows the free use of cryptocurrency. Announcing the news on Twitter, Panamanian pro-crypto congressman Gabriel Silva emphasized that the new regulatory initiative has the potential to create thousands of jobs, generate new sources of investment, as well as make government more transparent.

The pioneer from El Salvador will be the start of the acceptance of BTC as a legal means of payment. And BTC will be traded on the second tier Lightning Network with cheaper fees and faster speeds.

Reasons for the price drop

Bitcoin plummeted from more than 51,000 USD to as low as 42,000 USD. In a very short time, BTC price has recovered to around $47,000. Before that, there was an amount of BTC being sold pushing the price down. Accompanied by a series of long orders being liquidated, causing the price to fall deeper and faster.

When the price of BTC dropped a lot of people wanted to log on to exchanges to collect, trade or sell, leading to a series of exchanges like Coinbase, Kraken, Gemini and others reporting that users were affected. in various ways such as downtime or overload.

In the past time BTC has grown continuously, in the market the number of long orders has grown to a similar high when BTC price reached 65,000 USD in May. Funding rate also increased. Some people think that some people see the funding rate increasing and the large volume of long selling orders pushing the price down.

The usual long squeeze happened, causing more than $2.7 billion of long orders to be liquidated. So the price falls harder and deeper. Meanwhile, many people have taken advantage to collect BTC. The number of BTC withdrawn from the exchange in the past day increased.

The moment the price went down, President Nayib Bukele announced that El Salvador had bought 200 more Bitcoins. The country currently holds a total of 550 Bitcoins. He also shared a tweet thanking the IMF for giving his country the opportunity to buy cheap BTC.

With market corrections and growth, we see the importance of having specific strategies and goals. At the same time, with long-term investment, taking profit is important for me to achieve results when investing. During this bear market, it is the people who are prepared for any event, with cash available that will have the opportunity to buy the average BTC price at a low price.

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