After a difficult period in the crypto currency market around the world, and the painful blows to the bitcoin currency due to Elon Musk’s tweets, which negatively affected the largest and most valuable cryptocurrency in the crypto currency market, and caused it to lose more than 50% of its market value, the latest major speech El Salvador's Nayib Bukele has seen a wave of optimism regarding Bitcoin, after he announced the acceptance of the cryptocurrency as one of the legal currencies in the country.
El Salvador Gives Bitcoin a Kiss of Life
Although Bitcoin has seen slight gains over the past few days, the announcement by Nayib Bukele, President of El Salvador, to set an effective date for a law giving Bitcoin the legitimate cover for trading in El Salvador was the kiss of life for the cryptocurrency.
The president of El Salvador announced in his national address that the public will be able to trade and use bitcoin legally from September 7, using the Chivo e-wallet, which the user can access using facial recognition.
The announcement added that each user will receive the equivalent of $30 in Bitcoin as a motivational gift for the user when they get their electronic wallet.
It is noteworthy that the Legislature in El Salvador approved the bill by an overwhelming majority on June 9, with 62 members voting in favor and 3 abstaining, while 19 members opposed the bill, citing that the law is not constitutionally acceptable.
Trade different assets with bitcoin-based accounts
With the succession of events and the fluctuations of stock movements in different sectors, and taking into account the many challenges facing investors in traditional trading operations, the need arose to integrate technology into trading operations, and the result was the presence of a broker that accepts Bitcoin.
We find that EasyMarkets came out on top when it announced a new type of bitcoin-based account called μBTC.
It is not hidden from one of the many advantages that crypto currencies have against fiat currencies, but these advantages are magnified when crypto currencies are used directly in investment operations, which calls for resorting to a broker who accepts bitcoin in his asset trades.
Among the most prominent of these features are:
Low cost of cryptocurrency-based transactions to exclude all expenses and fees for brokers and legal representatives, in addition to the ease and speed of completion due to the disappearance of many complications and paperwork.
Ease of asset transfer process. Cryptocurrency dealers have a greater ability to control all their transactions in terms of execution date and the addition of external confirmations, which leads to greater ease and flexibility in the implementation of operations, especially the transfer of assets.
Impact of Bitcoin law on the cryptocurrency market
The announcement by the Salvadoran president about the date of entry into force of the bitcoin law and its direct material incentives for all citizens led to a significant rise in the value of bitcoin, reaching 5%, as it is trading at $ 34,294, and many other crypto currencies followed it in what looks like a collective rise of other crypto currencies which increased by 2 to 17%.
While analysts believe that such a law has revived the cryptocurrency market and helped spread an atmosphere of optimism that led to such an upward movement in the market, this effect is characterized by being short-term, and they advised not to be over-optimistic, as on the other hand, we should not The U.S. Federal Reserve's hawkish inclination toward interest rates, as well as the Chinese government's tough anti-cryptocurrency measures, are overlooked.
Evolution of traditional market conditions
In the traditional markets, which are often associated with the movement of Bitcoin prices, the construction and construction sector stocks witnessed an upward movement and achieved remarkable gains after the spread of positive news about the US Senate group reaching an agreement on infrastructure plans.
After weeks of discussions, the Senate group of 5 members of the Democratic Party, as well as the Republican Party, in addition to US President Joe Biden, reached the approval of a $579 million infrastructure plan, which contributed to raising the shares of a large number of construction and equipment companies. Construction and on top of Caterpillar Corporation.