Bitcoin started rising with the news El Salvador rejected the IMF request to drain BTC as a currency. In response, Bitcoin grew to a 14-day high price level, adding more than a quarter trillion US dollars into the crypto market.
Price tendency follows the pathetic month for cryptocurrency since March 2020. At that time, Bitcoin reached a price level of $5,000 due to panic selling off after the Covid-19 pandemic threat. After that, Bitcoin raised and achieved its all-time high price level of $69,000 in November 2021.
But soon after that, Bitcoin started a downward journey, coming to the seven-month low of $33,000 on January 24, 2022. However, on the same day, Bitcoin began an upward trend and gradually achieved a price level of $39,000 on Tuesday, February 01, 2022, showing positive crypto market growth.
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Bitcoin price met the $39K level today. Source: Tradingview.com
Bitcoin price retrieval started after El Salvador declined IMF request to withdraw Bitcoin as a medium of exchange. El Salvador is the first country to do so in the world after many months.
The decision to adopt Bitcoin as an official currency was met with fierce resistance from many governments, but it looks like El Salvador is taking a different approach. Treasury Minister Alejandro Zelaya says that his country sees cryptocurrencies not just for financial transactions and investments but also embracing this new technological advancement.
In a local TV interview, he added by referring to AP report;
“Countries are sovereign nations, and they take sovereign decisions about public policy. No international organization is going to make us do anything, anything at all.”
IMF reported many risks involved regarding consumer protection, financial stability, and financial integrity as reasons for not adopting Bitcoin. In addition, IMF added there is high crypto price fluctuation, and criminals can misuse it for their illegal activities.
IMF had already warned El Salvador that its involvement in Crypto could cause hindrance from getting borrowing from international institutions.
Marcus Sotiriou, a British digital currency analyst at GlobalBlock, said;
“It seems that El Salvador may not need the coercive loans from the IMF any longer by issuing the innovative the Bitcoin Bond. This bond allows them to raise funds to set up mining infrastructure.”
A continuous worldwide crypto acceptance and day by rumors that Latin American countries are accepting Bitcoin as an official exchange source are significant concerns of IMF.
The president of El Salvador, Nayib Bukele, shared a meme from The Simpsons on Twitter. Its caption read “I see you IMF,” and he responded with laughter at its parody nature in his own words.
Featured image from Flickr, chart from TradingView.com