Crypto Daily - With Bitcoin ($BTC) still tracking around the $100,000 level, the world is preparing for the next huge stage of Bitcoin adoption. As massive institutions and sovereign countries climb aboard, the adoption curve is about to get a lot steeper.
El Salvador becomes more flexible to accommodate IMF
When one thinks of Bitcoin adoption on the sovereign level, El Salvador will normally spring to mind. The very first country to make Bitcoin legal tender, following the lead of its far-sighted President Nayib Bukele, El Salvador has ploughed a lonely furrow up till now, with dire warnings from the IMF as to what would happen with such a policy in place.However, despite this, El Salvador’s adoption of Bitcoin has done wonders for the country, as its holdings have produced more than $300 million in profit thus far.
Nevertheless, the IMF is back again, and this time has obliged El Salvador to make some changes to its Bitcoin policy, one of the many strings attached to an IMF loan.
Thankfully, the strings in this respect are not too onerous, and among other things they require El Salvador to change its Bitcoin law so that not all businesses are obliged to accept Bitcoin for payments. Another requirement is that El Salvador increase its foreign reserves.
Besides accommodating the IMF for this important $1.3 billion loan, this should also facilitate loans from other major lenders such as the World Bank and the Inter-American Development Bank.
US and Russia among world powers looking at Bitcoin adoption
Other countries are on the verge of adopting Bitcoin in a big way, and these include some of the world’s preeminent economic powers. The US is in the throes of a complete turn around in its attitude to Bitcoin, with Donald Trump assuming the presidential mantle in January.Besides filling his administration’s top jobs with mostly pro-bitcoiners, Trump has said that he wants to set up a U.S. Bitcoin strategic reserve. At the same time, various U.S. states are moving forward with plans for their own individual strategic Bitcoin reserves.
It’s not just the United States. A dialogue is taking place in Russian government circles as to the possibility of setting up a strategic Bitcoin reserve.
On top of this, it must be wondered just how many other countries are also considering this, or have even started to mine or secretly buy Bitcoin, thus getting ahead in the potential Bitcoin buying arms race.
Bitcoin continues to respect uptrend
Source: TradingView
The short-term time frame for $BTC looks promising. A good level of support/resistance is developing at the $98,200 horizontal line. A recent breakout of a potential triangle has taken place, although it may well be that more price action could see another pattern emerge. The more time that price action can spend above this support level, the more likely it will be that this could be a base for the next upward thrust.
MACD continues bullish on 2-week chart
Source: TradingView
On the 2-week chart the fantastic progress that Bitcoin has made since breaking above the previous bull market top of $69,000 is totally evident. At the bottom of the chart, the MACD indicator, which gives buy and sell signals, is showing that it is very bullish. The blue line is above the orange signal line, with the jaws of these two lines wide open. Also, the dark green bars below are still being formed. The next bar is due to print at the end of this week. If it is a bigger, dark green bar, then expect buying to continue, and price to keep going up.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.