Bitcoin Jumps 5% as El Salvador Braces for Crypto Law, $30 E-Wallet Airdrop

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Bitcoin rose for the third day in a row after El Salvador announced the date it would officiate crypto as legal tender and give every citizen $ 30 via an e-wallet.

The world’s most valuable crypto is currently up over 5% on a 24-hour basis and is changing hands for around $ 34,294, according to CoinDesk 20 data. Most of the other cryptocurrencies in the top 20 by market value rose between 2-17% over the same 24-hour period, with Dogecoin seeing the strongest daily gains.

Despite hovering between $ 30,000 and $ 41,000, the rise in Bitcoin price coincides with the announcements made by the President of El Salvador, Nayib Bukele, who spoke during a national address on Thursday evening.

Bukele told his country’s citizens that they could receive $ 30 worth of bitcoins for free once they sign up for the Chivo e-wallet using facial recognition. The president also said his country’s controversial bitcoin law would go into effect on September 7th.

Although the fall can be portrayed as a great boon for Bitcoin in the short term, long-term shadows such as China’s anti-crypto raids and the Fed’s restrictive interest rate bias persist.

Meanwhile, traditional markets, which often correlated with Bitcoin price movements, saw stronger gains on positive news between a bipartisan Senate group made up of five Republicans and five Democrats and US President Joe Biden.

The parties reached a tentative agreement on Thursday, after weeks of negotiations, on a $ 579 million infrastructure plan that has helped sell US shares in construction and equipment companies like Caterpillar Inc.

US equity markets closed in the green on Thursday, while Asian markets, with the exception of Laos and Pakistan, posted positive results at press time on Friday.