Bitcoin's remarkable surge and institutional confidence
Bitcoin (BTC), the world's most popular cryptocurrency, is now witnessing a prolonged positive trend. After temporarily reaching an all-time high of $102,507, the price has steadied at $101,364. This spike is being driven by institutional backing, including BlackRock's recommendation of devoting 2% of investment portfolios to Bitcoin. Furthermore, Bitcoin ETFs have received more than $50 billion in net inflows, indicating a rising demand for regulated cryptocurrency investments.
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Argentina's President Javier Milei has outlined an ambitious goal to adopt Bitcoin as legal money beginning in 2025. This action will allow for the free circulation of all currencies, including Bitcoin, providing Argentines the freedom to pick their preferred payment methods.
Milei's program, modeled after El Salvador's pioneering method, is customized to Argentina's specific economic issues, such as hyperinflation and a sinking national currency. Along with this crypto-friendly strategy, Milei recommends reducing national taxes by 90% and enabling provinces to establish their own tax systems. These policies are intended to decentralize economic authority, boost local prosperity, and attract investment.
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According to experts, Argentina's pro-crypto attitude has the potential to propel the country to the forefront of bitcoin adoption worldwide. However, issues persist. For example, Ricardo Mihura of Bitcoin Argentina has warned that differences in tax treatment between Bitcoin and other currencies such as the US dollar or the euro may impede practical adoption.
Despite these worries, the revelation has inspired hope in the cryptocurrency community, bolstering Bitcoin's position as a viable alternative to existing banking institutions.
Bitcoin is now trading at $101,750, down 0.34% over the previous 24 hours but still within a well-defined bullish channel. It has good support at $100,050 and faces resistance around $102,600.
The 50-day Exponential Moving Average (EMA) confirms the upward trend, indicating that it will continue. With bulls defending the crucial psychological barrier of $101,000, Bitcoin's trajectory indicates additional ascent, bolstered by institutional confidence and macroeconomic reasons.