Bitcoin is now officially legal tender in a sovereign country for the first time, but can the largest cryptocurrency ever get out of its own way?
Bitcoin (BTC) headed towards $35,000 on June 9, spurred by historic news that El Salvador had legal tender.
Traders Are “Not Sure” Bitcoin Has Bottomed
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD rising rapidly on Wednesday as Bitcoin saw the first move by a full-fledged state.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
History! #Btc🇸🇻
— Nayib Bukele (@nayibbukele) June 9, 2021
As the reactions celebrated the El Salvador parliament’s decision, traders remained bitter. According to the report, expectations calling for a near-term return to $35,000 before a reversal and deeper BTC price drop hold.
Popular trader Crypto Ed summarizes on Twitter:
“Not sure if there is a bottom yet, I will update later today.”
A clearer warning has come from crypto trader Crypto Cobra, who this week repeated his forecast for a significant drop in the cryptocurrency.
However, Crypto Ed added that the falling US dollar, most recently on Monday, could still facilitate a “miracle” growth boom for Bitcoin.
“All we need for BTC to go up, DXY is broken here and it will happen.”
Altcoins will have a recovery momentum?
Meanwhile, Bitcoin’s new upward trajectory has a positive impact on altcoins. A look at the top fifty cryptocurrencies by market cap shows gains typically reaching 3% on the day, with a few bullish or bearish exceptions.
Ethereum is above $2,500, but like Bitcoin is still 5% below the price a week ago.
The overall crypto market cap is just under $1.54 trillion, with Bitcoin (Bitcoin Dominance) dominance at 41.6%.
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