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As the global financial markets are turbulent due to the Fed's interest rate hike policy, El Salvador has chosen a unique path. This Central American country recently increased its holdings by 10 Bitcoins (BTC), bringing its total holdings to 2804 coins, sparking widespread discussion in the Crypto Assets market.
As the first country in the world to legalize Bitcoin, El Salvador's move is seen as a strong endorsement for BTC. This action not only challenges the pessimistic predictions of Bitcoin's value going to zero but also demonstrates the long-term confidence of national level investors.
Historical data shows that within 30 days after El Salvador purchases BTC, the average price of Bitcoin rises by 12%. This "buying on dips" strategy clearly reflects its foresight as an institutional investor. Currently, the market value of the Bitcoin held by El Salvador has exceeded $780 million, and if it breaks the $1 billion mark, it could trigger widespread media coverage globally and potentially encourage retail investors to follow suit.
However, this move has also sparked some controversy. Some institutions on Wall Street, such as JPMorgan, have criticized El Salvador's Bitcoin investment as a "high-risk bet." At the same time, the stance of the U.S. Securities and Exchange Commission (SEC) on Bitcoin spot ETFs may also affect short-term market trends.
For participants in the crypto assets market, it is crucial to pay attention to the following points: First, whether El Salvador will announce further accumulation plans, which could drive BTC prices to test higher levels. Second, whether other Central American countries such as Panama and Honduras will follow the example of El Salvador and promote the application of blockchain technology. Finally, concepts related to geothermal mining in El Salvador may become new hotspots in the market.
Despite potential volatility in the short term, the entry of national-level holders may bring more stability and confidence to the Bitcoin market in the long run. The actions of El Salvador could become an important step in promoting the further integration of Crypto Assets into the traditional financial system.