Bitcoin Officially Becomes a Legal Tender as El Salvador Purchases BTC

Azeez Mustapha
7 September 2021 | Updated: 7 September 2021

The world watches on as El Salvador makes history with its first official Bitcoin (BTC) purchase. El Salvador President Nayib Bukele took to Twitter yesterday to announce the successful acquisition of the country’s first 200 coins.

The President added that El Salvador would make more BTC purchases as the deadline approaches to confirm the Central American nation as the first sovereign state to adopt a cryptocurrency as a legal tender.

The recent BTC purchase will help the government provide liquidity for its unusual Bitcoin economy, giving individuals and businesses the option to make BTC transactions if they please.

The Salvadoran Congress endorsed the controversial experiment in June, with 62 out of 84 votes for the project. However, many are worried that a BTC crash could leave many El Salvadorans with significant financial problems. Many citizens took to the streets in protest a week ago to communicate this concern.

That said, the Salvadoran government has clarified that BTC will not replace the dollar and that those uninterested in using BTC are under no obligation to partake. It added that it would provide facilities for instant convertibility between the USD and BTC.

Key Bitcoin Levels to Watch — September 7

Following a healthy bull run since the start of September, the benchmark cryptocurrency peaked near the $53,000 level this morning. However, there appears to be immense bearish pressure at that level, which has sent BTC tumbling towards the $50,500 support.

BTCUSD – 4-Hour Chart

That said, we could see a slow down in market volatility that could send Bitcoin into consolidation between $52,000 and $50,500 over the coming hours and days. As long as BTC secures its footing above the critical $50,000 support, bulls have a chance to redeem the $53,000 mark. A sustained slip below the $50,500 pivot zone could spell further declines and frustrate bull efforts.

Meanwhile, our resistance levels are at $51,400, $52,500, and $53,000, and our key support levels are at $50,500, $49,500, and $48,000.

Total Market Capitalization: $2.28 trillion

Bitcoin Market Capitalization: $959.6 billion

Bitcoin Dominance: 41.9%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.