- Mexico’s 3rd richest man says his bank is ‘working’ to accept Bitcoin
- Bitcoin will become legal tender in El Salvador on September 7
- CME Micro Bitcoin futures exceed 1 million contracts
The cryptocurrency market moved laterally during the majority of the past week amid moderate volatility. However Bitcoin climbed more than 15% over the weekend as news from Mexico revived the market. During Monday's session the cryptocurrencies show moderately positive dynamics. Bitcoin's dominance increased to 46.8%. The capitalization of all digital assets in circulation rose to 1.36 trillion, while an average daily trading volume is registered at $76.60 billion.
Bitcoin market dominance moves slightly higher. Source: Coinmarketcap.com
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Over the weekend Bitcoin price tested its major support zone at 30,000 USD, however comments from Ricardo Salinas Pliego - Mexico's third richest man managed to halt declines. Billionaire said during a recent interview that in his opinion Bitcoin is new gold and “the fiat fraud is inherent to the fiat system and we can see it today in the USA. Monetary issuance went to the moon, you understand? The dollar as hard money is a joke.” Salinas pointed out that nowadays investors cannot rely on currencies such as the peso, bolivar or even gold. He also announced that his Azteca Bank is preparing to accept Bitcoin as a legal tender.
El Salvador offers $30 of Bitcoin to promote use
Following the recent negative news from China, market attention is now focused on El Salvador where authorities announced Bitcoin will become legal tender on September 7. Government is planning to give each adult resident $30 in BTC to stimulate the interest of the country's population in the first cryptocurrency settlement. It is very likely that in the very near future we will see the integration of Bitcoin into the other emerging markets economies which could boost demand for the cryptocurrencies.
Rising popularity of CME Micro Bitcoin futures among institutions and retail traders
Meanwhile, Micro Bitcoin futures launched by the Chicago Mercantile Exchange (CME) nearly 2 months ago have surpassed the 1 million mark in contracts traded, which shows that institutions are looking to hedge their positions. This financial instrument allows institutions and retail traders to invest at a lower price point at 0.1 BTC.
BITCOIN – buyers managed to halt declines over the weekend and the price returned above 30,000 USD. Currently Bitcoin is testing local resistance around 34,000 USD which coincides with 50.0% Fibonacci retracement of the entire upward move which started back in March 2020. Should break higher occur then upward move may accelerate towards resistance at $42,000 USD. On the other hand, if we see a break below support at $29,000, stronger downward impulse may be on the cards. Source: xStation5
ETHEREUM started Monday’s session higher. Price bounced off the major support at $1839 which coincides with long-term upward trendline and 200 SMA (green line). If current sentiment prevails, then upward move may accelerate towards major resistance at $2500. On the other hand, should break lower occur, then downward move may accelerate towards support at $1425. Source: xStation5
