Bitcoin price spike amid election of crypto supporter as Argentina's president
Bitcoin price spike amid election of crypto supporter as Argentina's president
Bitcoin rose sharply by 2% on Monday, topping $37,200, after Javier Milei, who is considered a supporter of cryptocurrencies, won Argentina's presidential election.
Javier Milei received more than 55% of the vote, leading him to win the election by a margin of 3 million votes. Milei will officially take office next month, on December 10, according to CoinGape.
The crypto community sees Milei's victory as a good sign for the crypto industry. Amid Argentina's protracted economic crisis, the annual inflation rate of the Argentine peso currency has risen 140% in one year.
Cryptocurrency advocates believe Argentina could use Bitcoin as a hedge against peso devaluation and inflation. As a result, some of Bitcoin's leading advocates are also celebrating Milei's victory.
As a presidential candidate, Milei harshly criticized Argentina's central bank. He said the bank uses fraudulent schemes and has become "a mechanism to cheat people with inflationary taxes." Miley said he believes Bitcoin is a way to "return money to its original owner, the private sector."
Milei has repeatedly advocated for Bitcoin: "Bitcoin is a natural answer to central bank fraud and will help make money private again. With legal tender, banks are still cheating people by imposing an inflation tax."
However, he has not yet announced plans to legalize Bitcoin as an official means of payment in Argentina. If Bitcoin does become legal tender, Argentina will become the second Latin American country to recognize it after El Salvador.
Max Keiser, a proponent of Bitcoin adoption, believes that the leading Latin American countries are capable of adopting Bitcoin as legal tender as early as the beginning of 2024.
Prior to the election, in October, Milei said he would introduce a central bank digital currency (CBDC) after his election, which he said would help "solve" Argentina's ongoing problems with rising inflation.
Ahead of the halving of Bitcoin tokens, the crypto community is optimistic, with most analysts predicting a surge in the price of 'digital gold'. In particular, market expert Ali Martinez believes that we are close to the beginning of a 700-day Bitcoin bull run that will last until October 2025.
Loading...
Well-known crypto trader Titan of Crypto announced his prediction of Bitcoin's growth to $50,000 on November 19. Bitcoin is preparing to overcome major resistance at the $40,000 level. So far, these attempts have been unsuccessful, but the major cryptocurrency is steadily moving towards its goal.
The $39,000 level, according to the Titan of Crypto, will become a critical boundary and turn into a support level, and BTC should stabilize before the upcoming halving in April 2024. "The rally before the halving is about to reach the target zone between $39 and $50 thousand," he said confidently.
Read also: Singapore regulator takes control of the stablecoin market.
