El Salvador’s President Nayib Bukele is looking to attract foreign capital to boost the Bitcoin industry in his country, especially after the controversial path he has gone through to get the cryptocurrency adopted as legal tender.
A supposedly recent executive decision could be very favorable for bitcoiners in El Salvador… as long as they’re foreigners. According to an interview by Javier Argueta, legal adviser to President Nayib Bukele for AFP, foreign investors who made gains with Bitcoin will not pay the corresponding capital gains taxes:
“If a person has assets in bitcoin and makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment. There will be no taxes to pay on either the capital increase or the income.”
As per the current Law, Capital gains are taxed at a flat rate of 10% of net profits. Capital gains for securities are also taxable.
Article 5 of the Bitcoin Law states that bitcoin exchanges will not be subject to capital gains taxes like any legal tender.
There is no mention in the Law of any exemption for foreign industries, businesses, or traders.
Politics and Bitcoin Have a Weird Friendship in El Salvador
Argueta’s words offer an incentive for more and more companies to settle in El Salvador. For several months, Nayib Bukele has teased the idea of opening the country to foreign capital willing to develop services around Bitcoin.
Even the cryptocurrency application Strike played a vital role in the development of the Bitcoin Beach project in El Zonte, long before the Bitcoin Law came into force.
But so far, there is no executive order or interpretation that would validate Argueta’s promises. It is important to note that contradictions surrounding the application of the Law are not uncommon in Salvadoran politics. The most famous case is the declarations of President Bukele, who assures that the adoption of Bitcoin will be optional and its use free of charge even though the Law speaks of its mandatory acceptance, adding the fact that Bitcoin transactions must have an associated commission.
Private Capital Could be Key For Bitcoin’s Growth
Bitcoin has had a difficult debut in El Salvador.
In the first instance, a series of popular protests and criticisms let the world see that the population was not so enthusiastic about adopting the cryptocurrency.
Subsequently, multilateral financial organizations began to express their rejection of El Salvador’s decision. Only one major Central American institution decided to show its support.
Therefore, it is not surprising that the president of El Salvador is willing to capitalize on any possible help, even from the private sector. Many of the influencers on Crypto Twitter have shown their admiration for Bukele’s policies, and a tax exemption could be more than attractive to many of these new billionaires.
And if you are among those enthusiasts willing to move to the world’s first 100% truly Bitcoin-friendly country, Salvadoran citizenship can be yours for 3 BTC.
Bitcoin Price Analysis: BTC breaks above $65,000 all-time high, further upside to follow today?
- Bitcoin price analysis is bullish.
- BTC/USD set a new all-time high at $67,000 yesterday.
- Slight retracement to retest $65,000 as support overnight.
Bitcoin price analysis is bullish today as a higher low has been set after a retest of $65,000 as support. Therefore, we expect BTC/USD to continue higher over the next 24 hours.
The cryptocurrency market traded with strong bullish momentum over the last 24 hours. Bitcoin gained 3.12 percent, while Ethereum gained 12.35 percent. Meanwhile, Solana (SOL) continues to dominate the market, with a gain of 20 percent.
Bitcoin price movement in the last 24 hours: Bitcoin sets new all-time high at $67,000
BTC/USD traded in a range of $63,807.96 – $66,930.39, indicating substantial volatility over the last 24 hours. Trading volume has increased by 34.33 percent and totals $49.2 billion, while the total market cap trades around $1.24 trillion, resulting in the market dominance of 46.29 percent.
BTC/USD 4-hour chart: BTC to reach $68,000 today?
On the 4-hour chart, we can see Bitcoin price slightly retracing overnight as bulls prepare for another push higher today.
Bitcoin price action has seen steady growth so far in October. After a several-week consolidation above $41,000 at the end of September, a strong push higher was seen on the 1st of October.
Since then, BTC/USD has seen steady growth with several higher highs and lows set. From the previous major swing low of $41,000 to the current swing high of $67,000, BTC has gained around 63 percent.
Yesterday, the previous all-time high of $65.000 was broken clearly, further indicating strength for the momentum. Overnight a slight retracement back to the $65,000 mark was seen as bears looked to retest it as support, likely before further upside is seen today.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish as a slightly higher low has been set after a retest of $65,000 previous resistance as support. Therefore, we expect BTC/USD to continue higher over the next 24 hours.
While waiting for Fantom to move further, read our guides on LTC wallets, Gero wallets, and DeFi wallets.
PayPal co-founder suggests he’s underinvested in Bitcoin while it records new ATH
Bitcoin [BTC] did it once again. The asset broke its own record and caught the attention of the entire globe. Amidst this, PayPal’s co-founder, Peter Thiel expressed his angst over being “underinvested” in the world’s largest cryptocurrency.
The crypto industry as a whole garnered immense popularity over the last couple of years. From being closely regarded as an instrument that carries out illicit activities, to being adopted by governments across the globe, Bitcoin has certainly come a long way. Now, with a market cap of $1.2 trillion, Bitcoin stands as one of the most prominent currencies in the world.
Earlier today, BTC pushed past its previous all-time high of $64,899 and managed to hit a new high of $66,930.39. While BTC HODLers rejoiced this surge, an array of people were rather disappointed that they hadn’t poured in their money into the king coin. One of them was PayPal’s co-founder Peter Thiel.
PayPal’s co-founder talks crypto
During a recent interview, PayPal’s Thiel revealed why he felt underinvested in the asset. He added,
“You’re supposed to just buy Bitcoin. I feel like I’ve been underinvested in it.”
The latest move of Bitcoin was lauded by the entire market. Speaking about the effects of BTC’s ongoing rally, the PayPal co-founder suggested that “we are at a complete bankruptcy moment for the central banks.”
An array of people took to Twitter and made their own predictions about Bitcoin. While some suggested that BTC was slated to endure a major fall, a few others noted that the coin could be aiming for $70K. Tesla’s Elon Musk had a rather bizarre prediction for the coin.
The Tesla CEO’s latest tweet read,
Bitcoin’s rally certainly paved the way for several altcoins hitting new highs. Ethereum PETH], the second-largest cryptocurrency followed the footsteps of BTC and managed to hit an all-time high of $4,366.
PayPal has played a major role in the crypto-verse in the last year. From opening doors to crypto and constantly remaining bullish about it, has pushed several assets to a new level.
This Catalyst Could Trigger Long-Term Bitcoin Rally
Bitcoin is surrounded by all kinds of optimistic predictions these days especially since the king coin managed to smash through all-time highs the other day.
At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $65,933.90.
This trigger could boost Bitcoin
Popular analyst Benjamin Cowen just said that one overlooked catalyst could ignite a big long-term rally for Bitcoin (BTC).
During a new strategy session, the analyst analyzes the dollar index (DXY), which compares the US dollar against a basket of other major fiat currencies.
As the online publication the Daily Hodl highlighted, a weaker dollar can often imply higher prices in many assets.
He also said that one thing that could put extra bullish energy behind Bitcoin is the DXY beginning a macro trend downward.
Cowen explained that the DXY is potentially on the edge of a bearish trend as it gets rejected from its 100-week simple moving average (SMA).
“Ideally speaking, in order to really be the best conditions for Bitcoin, we’d like to see this keep coming on down. This would be the best condition for Bitcoin and here’s the crazy thing when you talk about the US dollar currency index… Look at the actual macro range.”
He said that despite a rising DXY during the majority of Bitcoin’s lifetime, the king has still managed to maintain a long-term bullish structure.
The analyst is also analyzing what could happen if the DXY eventually entered a more considerable downtrend.
“The dollar has more or less moved up during that time. It’s moved up, but there were a couple of key times when the dollar was moving down and that corresponded to Bitcoin bull markets.”
He continued and said the following:
“Imagine what Bitcoin could do if the dollar ended up coming back down… I think that would be incredibly bullish for Bitcoin.”