Main Takeaway: Markets Up 5% On Relief Rally From New Lows
Both cryptos and equities made a minor recovery on Wednesday, with cryptocurrencies being up almost 5% d-o-d. Bullish news and momentum currently depend on the outcome of the Ethereum Merge and Ethereum’s transition to PoS. Investors and traders should look for crypto to regain the $1 trillion dollar market cap to turn the tide around. However, there’s a string of negative regulatory headlines from the SEC mentioning that crypto exchanges fall under their jurisdiction as well as a rate hike coming at the end of the month.
Key Stories: El Salvador’s Bitcoin Legal Tender Experiment Reaches 1st Year Anniversary
El Salvador’s Bitcoin experiment has reached its first year anniversary since El Salvador President Nayib Bukele made the announcement that the country will adopt Bitcoin as legal tender alongside the US Dollar.
El Salvador has made multiple Bitcoin purchases and has an average price of over $40,000. Thus, the average cost is currently negative.
So what’s the verdict? Adoption has in fact been relatively slow in actually getting people to use Bitcoin in their daily lives and for transacting. However, this is widely expected due to year-long fluctuations and drops in BTC’s price. One of the boosted areas of this move could be said to be tourism, which people have been eager to visit the country to see how Bitcoin works on the ground.
The main takeaway is it’s early to say how well this experiment will play out. El Salvador is still a developing country with a relatively small economy. So adoption will be a slow process.