On Monday, February 5th, the reigning president of El Salvador, Nayib Bukiele, was re-elected with a staggering advantage over other candidates. This information is not a surprise for Central America’s experts and analysts worldwide, even though Bukiele’s first presidential term wasn’t as crystal clear as the results may suggest. Why does it matter for the crypto market?
Bitcoin And Its Position In El Salvador
Bitcoin in El Salvador has been a legal tender since 2021. The Central American country is a pioneer in the whole crypto market, and the essential person behind this decision is President Nayib Bukiele. His second term suggests that the government won’t stop its pro-crypto approach.
Felix Ulloa, the vice president of El Salvador, confirmed these speculations. A few days before the elections, he said the tight relationship with Bitcoin in El Salvador would “be maintained.”
What Factors Impact BTC Price Movements?
Every investor wanting to develop knowledge about Bitcoin and its whole ecosystem must keep in mind that several factors impact its price. These may differ from those influencing forex market fluctuations. Usually, traders pay attention to technological developments in blockchain, regulations regarding the crypto market, and speculations.
However, in some cases, factors impacting forex and crypto markets coincide. Geopolitical events usually move fiat currencies, and then the domino may fall on indices and equities. It may be different in terms of El Salvador elections. Bitcoin is one of the most significant economic ideas from the Central American government, and its development only encourages Bukiele to keep it up. At the beginning of the year, Bitcoin’s ecosystem experienced a major milestone with the allowance of exchange-traded funds (ETFs).
El Salvador Elections: Bitcoin Keeps Developing
Being a pioneer does not come with an international appreciation for El Salvador. Bitcoin, on the national level, is still treated with uncertainty. The International Monetary Fund (IMF), the most significant financial organization monitoring the financial situation worldwide, disapproves of this decision made by Bukiele’s government.
Nevertheless, El Salvador has growing optimism and trust in the president’s decisions. Even though his re-election was mainly based on fighting crime, citizens also put trust in the economic future of El Salvador, with Bitcoin at its forefront.
