Bitcoin officially becomes the national currency of El Salvardo

The BTC correction after more than 1.5 months of continuous growth is understandable. This is also a correction that many long-term investors have been waiting for in order to be able to buy the average entry price. Bitcoin also corrected the first day El Salvador became the first country to officially accept BTC.

This event is something that many large entities like the International Monetary Fund (IMF), the World Bank (World Bank), the US government, Europe, … do not want. El Salvador has been warned several times by the IMF if the country will accept Bitcoin as the national currency.

El Salvador is a country that does not have its own fiat currency but uses the USD currency as a means of transaction. This results in disadvantages that make this country dependent on the strong influence of the US dollar. This is one of the reasons El Salvador chose BTC as its fiat currency. Although El Salvador does not regulate BTC, it is not regulated by any government.

Next, the country of Panama has also submitted a bill to regulate cryptocurrencies. This is a new bill in Panama that recognizes Bitcoin as an alternative payment method and allows free use of cryptocurrencies. 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, create new sources of investment and make new investments more transparent.

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

Reasons for the drop in prices

Bitcoin plummeted from over $ 51,000 to just $ 42,000. In no time at all, the price of BTC has rebounded to around $ 47,000. Before that, a lot of BTC was being sold which drove the price down. Accompanied by a series of long orders that are liquidated, causing the price to fall lower and faster.

When BTC’s price fell, many people wanted to join exchanges to collect, trade, or sell, which resulted in a number of exchanges such as Coinbase, Kraken, Gemini, and others reporting that users were affected by overload.

Recently, BTC has grown steadily, the number of long orders in the market has risen to a similar high level when the BTC price hit $ 65,000 in May. Some people think that some people see the funding rate go up and the large volume of long sell orders pushing the price down.

The usual long squeeze occurred which resulted in long orders in excess of $ 2.7 billion being liquidated. So the price falls harder and deeper. Meanwhile, many people have taken the opportunity to collect BTC. The number of BTC withdrawn from the exchange last day has increased.

The moment the price was falling, 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 allowing his country to buy cheap BTC.

With market corrections and growth, we see the importance of specific strategies and goals. At the same time, profit-taking is important to me in long-term investments in order to achieve results when investing. During this bear market, it is the people who are prepared for any eventuality and with cash the option to buy the BTC average price at low prices.