The IMF is concerned about El Salvador’s decision to make BTC legal tender may raise legal and financial concerns, Bitcoin price drop slightly
Bitcoin price has continued to fluctuate wildly over the past hours, with a range of more than $2,000 amid a number of new factors. At press time, BTC is trading around $36,300, down slightly by 2% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
IMF is concerned about El Salvador’s decision to make BTC legal tender may raise concerns, Bitcoin price drop slightly
Yesterday, Bitcoin surged to $38,200, continuing to benefit from investor excitement following El Salvador’s adoption of Bitcoin as legal tender. The price then turned lower again, but the intraday low remained above $36,000.
Even so, in the past 7 days, Bitcoin has lost about 6% in value against the dollar. The total volume of Bitcoin traded in 7 days is $44.43 billion, the market cap to date is $686.25 billion.
It is not clear at this time whether the suspension of Bitcoin mining will mean a permanent ban, but it is clear that the pressure on BTC is increasing. Meanwhile, the IMF has expressed displeasure over El Salvador’s move to accept Bitcoin as legal tender.
In a Thursday press briefing from the International Monetary Fund (IMF), spokesperson Gerry Rice said the group was already in discussions with lawmakers in El Salvador over a loan to support the country’s economy, having approved emergency funds related to the pandemic last year.
Gerry Rice, Director of the IMF Communications Department and IMF Spokesman
However, Rice said an IMF team would be meeting with President Nayib Bukele today and implied crypto would be a likely topic for discussion.
“Adoption of Bitcoin as legal tender raises a number of macroeconomic, financial, and legal issues that require very careful analysis. We are following developments closely, and we’ll continue our consultations with the authorities.”
In fact, the value of Bitcoin has fluctuated wildly over the 12 years since its inception, and the fact that the coin’s price fluctuates in double digits on a daily basis making it impractical for commerce.
On the other hand, Bitcoin is still little used to buy goods and services around the world, although more and more large companies are accepting it as a form of payment.
El Salvador says the Bitcoin-to-dollar exchange rate will be set by the market, and the government guarantees convertibility to USD at the time of transaction through a $150 million trust fund created at the country’s development bank.
However, no details were given by El Salvador on how this would work in practice and whether vendors and businesses would reflect prices in real-time or possibly through other mechanisms such as how.
Therefore, the news of El Salvador accepting Bitcoin is not expected to have a long-term impact on the Bitcoin market. This market in the coming time is forecasted to continue to be affected by the statements of billionaire Elon Musk and the management actions of governments, especially China.
In the market, a series of large-cap Altcoins also plummeted along with Bitcoin. Accordingly, Ethereum is down 4.7%, Binance Coin is down 5.4%, Cardano is down 4.8%, Dogecoin is down 4.7%, XRP is down 3.27%, Polkadot is down 1.48%…
Total market capitalization was dragged down to $ 1,590 billion, equivalent to a decrease of 2.81%.
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