Bitcoin should be legal tender worldwide, BTC is showing signs of bottoming out
- Mexican Senator Indira Kempis shows an inclination to make Bitcoin legal tender.
- Bitcoin is showing signs of bottoming compared to previous bottoms in 2015 and 2019.
The global macroeconomic situation appears to be in complete disarray, and Bitcoin (BTC) is once again in the spotlight. Bitcoin was born on the premise that when trusted financial institutions such as banks fail to deliver, it can serve as a potential hedge to protect investors’ wealth.
As of now, central banks around the world have faced major challenges in dealing with inflationary problems. On the other hand, top fiat currencies such as EUR, Sterling Pound (GBP) and Japanese Yen have faced a big fall this year. Also, as the Fed has flushed massive money into the economy during the pandemic, the purchasing power of the USD continues to decline.
As a result, global economies are increasingly paying attention to Bitcoin. Bitcoin’s limited supply of 21 million BTC and its decentralized nature make it free from the clutches of central banks and put absolute powers in the hands of its holders. Governments around the world have begun to show their interest in Bitcoin.
According to the latest developments, Mexico is now considering the possibility of making Bitcoin a legal tender.
JUST IN – 🇲🇽 Mexican Senator: “#Bitcoin will be legal tender.” pic.twitter.com/k3pJtZ9ZNv
— Bitcoin Magazine (@BitcoinMagazine) 3 October 2022
The development comes just a year after the Latin American country of El Salvador made BTC legal tender. Tier-III economies have shown a greater affinity for Bitcoin as inflation spirals out of control and crushes their economic growth.
It is only a matter of time before Bitcoin can become legal tender worldwide. As regulatory agencies around the world have been working on crypto frameworks, more clarity will emerge over time.
Bitcoin shows signs of bottoming
The world’s largest cryptocurrency Bitcoin has shown greater resilience in recent weeks despite the strong volatility on Wall Street. According to on-chain data, Bitcoin is performing similarly to previous bottom markets. According to Ki Young Ju, CEO of on-chain data provider CryptoQuant, Bitcoin accumulation levels have reached a 7-year high. In his latest tweet Ju noted:
BTC accumulation level reached a 7-year high. Over 6 month old Bitcoins now take 74% of realized amount. It was 70% and 77% at the last lows in 2019 and 2015 respectively. Imagine you buy Bitcoins and do nothing for over six months. You know how hard it is.
The CryptoQuant CEO clarifies that he does not believe that over 74 percent of BTC has not moved in the last six months. “It’s not just about Bitcoin supply but realized capitalization. I meant ‘over six month old Bitcoins take 74% of realized cap, which means over six month old immovable Bitcoins take 74% of market cap in terms of Pnl realization ,’ he added.
Although BTC has shown greater resilience, it is difficult to say whether it has completely disconnected from the stock market.
