Bitcoin Price Rising As El Salvador Rejects IMF Call To Dump BTC


Bitcoin began to rise with the news El Salvador rejected the IMF’s request to divest BTC as its currency. In response, Bitcoin grew to a 14-day high price level, adding more than a quarter of a trillion dollars to the crypto market.

Price trend follows the pathetic month for cryptocurrency since March 2020. At that time, Bitcoin hit a price level of $5,000 due to panic selling following the Covid-19 pandemic threat. Thereafter, Bitcoin increased and reached its all-time high of $69,000 in November 2021.

But shortly after, Bitcoin embarked on a downward journey, reaching its seven-month low of $33,000 on January 242022. However, on the same day, Bitcoin started an upward trend and gradually reached a price level of $39,000 on Tuesday, February 1, 2022, demonstrating positive crypto market growth.

Bitcoin price hit the $39K level today. Source: Tradingview.com

Bitcoin price rally began after El Salvador rejected the IMF’s request to withdraw Bitcoin as a medium of exchange. After many months, El Salvador is the first country in the world to do this.

El Salvador’s Response to IMF Call to Dump Bitcoin

The decision to adopt Bitcoin as official currency met fierce opposition from many governments, but it seems that El Salvador is taking a different approach. Finance Minister Alejandro Zelaya says his country sees cryptocurrencies not only for financial transactions and investments, but also to embrace these new technological advancements.

In a local TV interview, he added by referring to the AP report;

“Countries are sovereign nations and make sovereign decisions about public policy. No international organization will let us do anything, nothing at all.”

IMF reported: many risks related to consumer protection, financial stability and financial integrity as reasons not to use Bitcoin. In addition, the IMF added that there are high crypto price swings and criminals can abuse it for their illegal activities.

The IMF had already warned El Salvador that its involvement in Crypto could hinder borrowing from international institutions.

Marcus Sotiriou, a UK digital currency analyst at GlobalBlock, said;

“It appears that El Salvador no longer needs the IMF’s compulsory loans by issuing the innovative Bitcoin Bond. With this bond, they can raise funds to set up mining infrastructure.”

A continuous global crypto adoption and day by day rumors that Latin American countries Accepting Bitcoin as an official exchange source is a major concern of the IMF.

El Salvador President Nayib Bukele shared a meme from The Simpsons on Twitter. The caption read, “See you IMF,” and he responded with a laugh in his own words at its parody nature.

Featured image from Flickr, chart from TradingView.com

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