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BTC price not interested in El Salvador? 5 Things to Watch in Bitcoin This Week

Bitcoin (BTC) kicks off another week under $40,000, but has two new landmarks under its belt.

After a steady fall from the FUD from China over the weekend, Bitcoin adoption has seen the unexpected — from El Salvador and Paraguay.

As the world is about to welcome the first two “Bitcoin countries” in history. There are many things to watch. But will the BTC price movement catch up?

Cointelegraph Consider five things that could turn BTC/USD in the next few days.

Higher interest rates are “good,” Yellen said.

A cursory look at the broader macro climate creates an interesting mix for Bitcoin traders and holders.

Inflation is still being discussed in this city in the United States by US Treasury Secretary Janet Yellen. revealed that she would be satisfied with the higher rate.

Yellen spoke to Bloomberg last weekend of supporting President Joe Biden̵

7;s latest big spending package and argued that this should be trusted even if it results in inflation.

“If we end up in a slightly higher interest rate environment, It will be good for society and the Fed perspective,” she told the publication.

Higher interest rates are likely to improve Bitcoin’s appeal as a deflationary asset. But their handshake is the US dollar soaring this month. which is what traditionally pressures BTC/USD.

After bouncing off 90, the US Dollar Index (DXY) is now busy building a losing base keeping up with the downtrend which started in mid-March.

US Dollar Index (DXY) 1 Day Candlestick Chart. Source: TradingView.

El Salvador, Paraguay fail to reverse Bitcoin bullis

Within Bitcoin, everyone’s words are “El Salvador”

After payment gateway Strike began to aggressively invade the country, President Nayib Bukele officially announced that he would send a bill to Congress to legalize Bitcoin.

if successful El Salvador will be the first country in the world to do so. By effectively implementing something similar to the “Bitcoin standard”

Bukele confirmed his plans during a video speech at the Bitcoin Conference 2021 in Miami last week in which Strike CEO Jack Mallers outlined the plans.

However, the market was barely moving. from the revelation which continues as a member of parliament from Paraguay. Has used social media to hint at plans to integrate Bitcoin into a second world economy.

“As I said a long time ago. Our country must keep pace with the new generation. That moment has arrived Our moment,” Carlitos Rejala tweeted Monday.

“This week we kick off with an important project to make Paraguay before the world! the real thing to the moon”

Rejala also thanked Bukele for his “example”.

As Cointelegraph reports, however, El Salvador’s Bitcoin adoption may come at a price. Critics have reacted about Bukele’s authoritarian leadership, along with the potential problems with the US dollar economy to do so.

For Caitlin Long, the founder and CEO of Avanti Bank, there may be a bigger force.

“Bitcoin is hacking a totalitarian system. Like big tech hacks,” she wrote in a tweet about the move.

“Bitcoin doesn’t care why the president of El Salvador wants BTC to be legal, it doesn’t matter.”

Short legs with classic bear label.

See the price movement in an instant. And everyone will be forgiven for their cold feet over Bitcoin on Monday.

For all the excitement of the meeting, BTC/USD has been in a solid range and removed the higher ups and downs that could signal a breakout.

Recent attempts to do so — by avoiding a narrower “compression” wedge where the volatility trend is nearly zero — has stalled entirely.

At the time of writing Bitcoin is trading above $36,000.

with a lower funding rate. Positive signals are also visible in certain areas of the market. But some areas have already sounded the alarm.

Causing concern are the short trades on the main exchange Bitfinex, as the popular Twitter account Fomocap noted on Monday. The rise in shorts has coincided with the largest volatility in history. which is often a downtrend

“Bitfinex’s sudden move was always meaningful, from Nov 25 down to May 19 increase,” he warned.

“It’s up again”

Bitfinex shorts vs BTC/USD annotated chart. Source: Fomocap/Twitter.

This will cement existing fears that Bitcoin is not finished with a bearish retracement. Opinions are divided according to Cointelegraph reports — some are waiting for a return of $20,000, while others believe that level is out of reach.

Ethereum Eyes ‘Parabolic’ Movement Against BTC

Bitcoin pain could still be altcoins profit

with cryptocurrencies points Some remain upside, despite the declining crypto market cap, hope remains that opportunist “alt seasons” can still happen.

Of particular interest this week is that Ether (ETH), against Bitcoin, is approaching a local high of 0.081 last month.

Currently at 0.076 ETH/BTC can be ready for the next breakout. Three Arrows Capital CEO Kyle Davies described the incoming move as a “parabolic”.

“If we hit .2 without keeping usd high all the time for both assets. I won’t mess with crypto anymore,” replied Blockfolio’s UpOnly chat host Cobie, capturing the general feeling of frustration with current price movements among traders.

ETH/BTC hit an all-time high of 0.123 in early 2018 and has since failed to approach that level again.

1 Week ETH/BTC Candlestick Chart (Bitstamp) Source: TradingView

On Monday, most of the 50 cryptocurrencies by market cap saw a slight increase as Bitcoin fell, while some outperformed, including the yielding Solana (SOL). 10% and Tezos (XTZ) at 12%

“More upside can be seen here, especially if Eth/BTC holds,” trader Josh Rager forecast Sunday on SOL’s prospects.

Miner outflows peak in 2021

Bitcoin hash rate is showing signs of recovery. There has been a slight increase from 125 exahashes per second (EH/s) to 134 EH/s over the past few days.

Difficulty remains due to a reduction of approximately 8% in the next auto-recalibration over five days. to compensate for the miners’ oscillations, which are accompanied by recent fluctuations.

However, when the miners were assured of holding through the dipping, their holdings decreased. very Last week, information displayed

According to analyst William Clemente, the miner’s balance fell 5,000 BTC compared to a week ago. which is a big recovery

On June 3, 3,012 BTC exited the largest mining pool Poolin, the largest single outflow in 2021. Another 2,501 BTC was moved a day later.

However, analyst Lex Moskovski commented that The money may not have been sold.

“This is not singing for sale. Even though today we see three times the current outflow,” he tweeted.

Miner BTC balance chart. Source: William Clemente/Twitter.