The most interesting news this weekend? El Salvador declaring an intention to be the first country to adopt a non-fiat currency: Bitcoin. This one is going to take some thinking about. With 70% of El Salvador's residents un-banked, the world's first non-fiat social economic experiment is about to play out in ways we can't yet comprehend.
It will be an interesting thing to watch, as companies and employees become fixated on the daily fluctuations in the price of Bitcoin. Paraguay has hinted that it may follow suit, so keep an eye on Twitter for other presidents adopting the red laser eyes...
One person who may be relocating to El Salvador to escape capital gains taxation is MicroStrategy CEO, Michael Saylor. Furthermore, not happy with just 90,000 BTC, MicroStrategy has announced it will offer $400M in senior secured notes to push it over the 100,000 BTC level.
Unfortunately, neither a country adopting Bitcoin as legal tender, Microstrategy buying another 10,000, nor the largest gathering of Bitcoin maximalists in Miami, was able to move the price.
Hopefully Elon Musk will tweet something tomorrow.
Prices have continued to bounce along inside the $35,000 to $37,000 corridor. To either side of $36,400, the market is open to the possibility of building momentum. As we sit just below, the focus is now on the downside.
$35,500 will act as the first level of support, ahead of key support at $33,600. Should we move down with pace, we may see the bears push to break this key level and drive Bitcoin towards the $30,000 level.
A climb back above $36,400 will settle any nerves, with prices then looking for a return to test resistance at $37,900. $38,600 will likely cap any further attempt at gains. $40,900 remains the short-term upside target for the bulls.
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With investors looking at the next Fed monetary policy meeting, equity indexes rose yesterday. The S&P reached new records while the Nasdaq closed within 20bps of the all-time high.
Welcome to the Weekender: Your weekly round up of the most viewed stories of the week, as voted by you, our readers. This week has seen the negative news flow replaced with tales of adoption, it appears the central bankers, country leaders, and the financial institutions have all agreed: Digital finance is here to stay.
Yesterday, the US reported CPI data—an index calculating the price increase or decrease of a basket of goods. The number is higher than expected and indicates inflation is picking up.