May 30, 2023



Cryptocurrencies: El Salvador Promotes, China Bans


Bitcoin is growing by 3% per day to $43,500. At night, the reference cryptocurrency declined to $41K, where it attracted the demand of buyers on the decline. At this stage, buyers are starting to buy BTC pretty quickly, which gives some hope.

Bitcoin Gets Support on Declines to $40000Bitcoin Gets Support on Declines to $40,000

The coin receives strong support on declines in the $40K area. Over the past month, bitcoin has beaten off bear attempts in this area 5 times. However, the increased intensity of sellers may still play against bitcoin. At the moment, BTC has finally digested the “Chinese news factor”, and in the future, news from China is likely to have less and less influence on the price dynamics of the coin.

The greed and fear index for bitcoin and the largest cryptocurrencies is at around 20, which corresponds to the “extreme fear” mode. This is a bullish signal to buy on the rebound for the first cryptocurrency and this market as a whole. The RSI index for BTC/USD on the daily chart is in the neutral zone, showing moderate growth and indicating that there is room for growth.

The index of cryptocurrency fear and greed plunged into extreme fear The index of cryptocurrency fear and greed plunged into extreme fear

Despite external pressure, El Salvador is moving forward with the introduction of bitcoin into the economy. The President of the country published a video with the installation of asics powered by the energy of the volcano. It is obvious that the government of the country is going all-in in its experiment on citizens and the economy. Of course, news of this nature, if it does not cause powerful buying impulses, then it definitely supports a positive mood among the participants of the crypto market.

Nevertheless, if the experiment ends in a resounding failure, we may well see an increase in the negative impact on bitcoin, and after it on the entire crypto sector. It is difficult to unequivocally condemn and support such a project. It is likely that the success of such an event may be even more dangerous than failure, as it will pull a number of countries that will follow the example of El Salvador. Globally, there are many countries dissatisfied with the current world order, the role of the dollar and the IMF, but at the current stage, betting on bitcoin is like putting everything “on red” in a casino.

China is going exactly the opposite way, banning everything related to cryptocurrencies. It became known that the Chinese manufacturer of asics for bitcoin mining Bitmain stopped selling on the territory of its country. This is very revealing news, since it is obvious that the Chinese authorities, after weighing all the pros and cons, have come to a total prohibitive position.

The authorities of Western countries usually do not support such methods in words, but in fact they very often copy Beijing’s position, wrapping it in a “different wrapper”. It is difficult to say to what size the crypto market will be allowed to grow, but it is obvious that the regulation of the Chinese type is getting closer.