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Bitcoin dumps 9% even as Central American leaders endorse the asset Bitcoin dumps 9% even as Central American leaders endorse the asset

Bitcoin dumps 9% even as Central American leaders endorse the asset

This is either โ€˜denialโ€™ or โ€˜complacency,โ€™ depending on whom you ask.

Bitcoin dumps 9% even as Central American leaders endorse the asset

Cover art/illustration via CryptoSlate

Bitcoin dropped 9% on Tuesday morning even as Central American leaders switched to โ€˜laser eyesโ€™ this week, data from multiple sources shows.

The sentiment is arguably bearish, as the dumps come off the back of nation-states moving to adopt the asset and analytics provider MicroStrategy announcing a $400 million private note round to acquire even more Bitcoin.

Bitcoin for all

The weekend saw El Salvador president Nayib Bukele say the country is looking to adopt Bitcoin as โ€˜legal tenderโ€™ and will soon float an official proposal to local Congress. Then, in a tweet, Bukele said there will be no capital taxes on Bitcoin gains and that all โ€˜crypto entrepreneursโ€™ will be given permanent residencies.

Other Central American leaders soon joined in that chorus. This morning then saw a Panama official chime in with his own thoughts, proposing legislation for Bitcoin in the country.

South American officials aren’t far behind. Just yesterday, Paraguayโ€™s National Congress member, Carlitos Rejala said Bitcoin would go โ€˜to the moon’ and the country would need to go โ€œhand-in-hand with the new generationโ€ to keep up.

“We start this week with a valuable project that will renew Paraguay in front of the world,โ€ said Rejala on Twitter, adding โ€œto the moon #btc & #paypalโ€ to the end of his announcement.

Market reacts the other way

Data shows Bitcoin fell $3,000 this morning to as low as $32,220. It has since recovered to $33,171 as of press time, but trades well below the 34-period moving averageโ€”a well-known tool used by traders that uses the average of recent prices to determine market trends.

Image: BTC/USD via TradingView.

Bitcoin had earlier failed to break the $36,000 โ€˜resistanceโ€™ level. Its market cap has additionally dropped by a staggering $600 billion as result (it was well over $1.2 trillion in April 2021).

Meanwhile, there were tears for some traders. Data from analytics tool Bybt shows $433 million worth of Bitcoin traders were โ€˜liquidatedโ€™ in the past 12 hours alone, with over $1 billion in futures liquidations across the entire crypto market.