El Salvador’s Legislative Assembly approved reforms to the nation’s Bitcoin Law, altering key aspects of its applicability.

Bitcoin remains a recognized asset in El Salvador, although this development effectively weakens its official classification as legal tender.

Key Amendments to El Salvador Bitcoin Law

With 55 votes in favor, lawmakers eliminated the requirement for economic agents to accept Bitcoin (BTC). They also removed the state’s role in providing infrastructure for its use and erased references to Bitcoin as legal tender.

“With 55 votes in favor, we reform the Bitcoin Law to improve its applicability,” El Salvador’s Legislative Assembly announced.

The reforms notably eliminate mandatory Bitcoin acceptance, making its use voluntary for private sector participants. This marks a significant departure from the original law, which mandated businesses to accept Bitcoin as a payment method. Additionally, the state will no longer facilitate Bitcoin transactions through mechanisms such as the Chivo Wallet.

“…only natural or legal persons, with full private participation, may accept Bitcoin as a form of payment when it is offered to them,” the report said, citing Article 7.

It entailed the repealing of Articles 4, 8, and 9, which had allowed tax payments in Bitcoin. These clauses also required the government to provide infrastructure for Bitcoin-to-dollar convertibility.

The changes align with an agreement with the International Monetary Fund (IMF) for a $1.4 billion loan intended to strengthen fiscal sustainability. Government debt obligations must now be settled in the currency in which they were originally contracted, further reducing Bitcoin’s role in national financial matters.

IMF Agreement and Economic Considerations

Indeed, the IMF’s loan agreement with El Salvador played a crucial role in shaping these reforms. In December 2023, the Salvadoran government committed to scaling back Bitcoin’s mandatory use and reducing its involvement in Bitcoin-related infrastructure.

These legislative changes reflect the broader sentiment of El Salvador’s population. Local media reported a recent survey, which revealed that 92% of citizens did not use Bitcoin in transactions throughout 2024.

“Various studies by reputable pollsters in El Salvador have indicated that 92% of the population did not use Bitcoin in 2024, the year in which it recorded its lowest use since 2021,” the report said.

Despite these regulatory shifts, El Salvador continues to engage with Bitcoin on multiple fronts. The country expanded its Bitcoin reserves a week before the reforms, signaling its long-term commitment to the digital asset. Additionally, El Salvador has been eyeing discounted Bitcoin acquisitions amid the US government’s planned $6.7 billion BTC sale.

Bitcoin has also brought economic benefits to El Salvador. Three months ago, the government leveraged Bitcoin’s price surge to repurchase national debt, strengthening its fiscal position.

“We promised to eliminate the Political Debt. People complained to us that we had not yet fulfilled our promise. It took us a while, but we listened to the people, and today we are delivering. No more financing of political parties with the people’s money,” El Salvador president Nayib Bukele said in an X post.

These moves highlight the administration’s strategic approach to utilizing Bitcoin while adapting to international financial pressures. Meanwhile, El Salvador continues to attract major crypto firms. Stablecoin issuer Tether recently relocated to the country after securing a significant license.

“Today a meeting that will change the course of history happened. Great minds around a table in El Salvador,” Tether CEO Paolo Ardoino shared on X.

Additionally, video platform Rumble is reportedly considering moving its operations to El Salvador. These highlights cement the country’s appeal as a crypto-friendly jurisdiction.

While the state’s role in Bitcoin adoption diminishes, private sector involvement remains active. Similarly, the country’s strategic Bitcoin acquisitions continue. As the IMF agreement progresses and crypto firms establish operations in El Salvador, the nation’s Bitcoin experiment remains a focal point for global financial and cryptocurrency markets.

Since January 17, Hedera (HBAR) has been on a downward trajectory, shedding 20% of its value as selling pressure intensifies. The altcoin has since traded below a descending trendline, indicating persistent bearish sentiment in the market.

As demand for the altcoin continues to plummet, HBAR risks extending its price drop. This analysis has the details.

Hedera Bears Overrun Market

BeInCrypto’s assessment of HBAR’s price performance on a daily chart reveals that the altcoin has traded below a descending trendline since January 17. The token trades at $0.31 at press time, noting a 20% price decline since then.

A descending trendline is a bearish pattern that connects a series of lower highs in an asset’s price movement, indicating a consistent downtrend. When an asset trades below this trendline, it suggests that the price is under bearish pressure and the prevailing market sentiment is bearish.

Readings from HBAR’s Awesome Oscillator (AO) confirm this prevailing bearish sentiment. For context, this momentum indicator has posted only red histogram bars since January 21, indicating that HBAR has been trailed by negative bias for a while. 

An asset’s AO measures market momentum by comparing the difference between two simple moving averages (SMA) of an asset’s price. When its bars are red, it indicates a shift towards bearish momentum, suggesting that sellers are gaining strength and the market may be poised for further downside.

HBAR Price Prediction: Token Under Threat of 18% Decline to $0.26

If sellers retain market control, HBAR risks falling 18% to trade at $0.26. According to its Fibonacci Retracement tool, if selloffs increase at this point, that support level may not hold, and the token’s price could drop further to $0.22.

However, a positive shift in market sentiment could prevent this from happening. If HBAR witnesses a spike in buying pressure, its price could rebound and climb toward its multi-year high of $0.40.

Ethereum price struggled to continue higher above $3,220. ETH is now consolidating losses and might face resistance near the $3,220 zone.

• Ethereum started a fresh decline below the $3,120 zone.
• The price is trading below $3,180 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $3,220 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another decline if it stays below the $3,200 level.

Ethereum Price Faces Resistance

Ethereum price started a fresh decline below the $3,220 and $3,180 levels, like Bitcoin. ETH even declined below the $3,050 level before the bulls appeared.

A low was formed at $3,021 and the price recently corrected some losses. There was a move above the $3,120 and $3,150 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $3,425 wing high to the $3,020 swing low.

However, the bears were active below the $3,200 resistance. Ethereum price is now trading below $3,200 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance at $3,220 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $3,180 level. The first major resistance is near the $3,200 level and the trend line. The main resistance is now forming near $3,220 and the 50% Fib retracement level of the downward move from the $3,425 wing high to the $3,020 swing low.

A clear move above the $3,220 resistance might send the price toward the $3,320 resistance. An upside break above the $3,320 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,450 resistance zone or even $3,500 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,200 resistance, it could start another decline. Initial support on the downside is near the $3,0750 level. The first major support sits near the $3,050.

A clear move below the $3,050 support might push the price toward the $3,020 support. Any more losses might send the price toward the $3,000 support level in the near term. The next key support sits at $2,950.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,050

Major Resistance Level – $3,220