- El Salvador’s Finance Minister said the government has prepared 20 bills to provide a legal foundation to President Bukele’s proposed “Bitcoin Bonds.”
- Meanwhile, BTC prices are consolidating above $45k resistance.
NEW DELHI (CoinChapter.com) — El Salvador plans to prepare about twenty bills covering financial and securities markets. The move is part of President Nayib Bukele’s plans to issue digitized dollar-denominated bonds, dubbed “Bitcoin Bonds,” which the President announced in Nov.
The Central American country’s Finance Minister, Alejandro Zelaya, told news outlet El Mundo that the legislation would help create a framework to regulate the issuance of crypto assets-based securities. El Salvador plans to raise $1 billion with the digitized dollar bond to fund President Bukele’s Bitcoin city.
To recap, Bitcoin City is an initiative that involves building a Bitcoin-centered city with residential and commercial areas and amenities like airports, restaurants, etc., along with educational infrastructure and sustainable transport.
Furthermore, the city includes a Bitcoin mining operation powered by geothermal energy from a nearby volcano. The volcano-based energy source has lent the bonds another monicker- ‘Volcano Bonds.’
Additionally, the Ministry of Finance could use the “Bitcoin Bond” funds to honor an $800 million issue in Jan 2023. Mr. Zelaya stated that the government would require financing to honor its Eurobond obligation. The Treasury head asserted the government already has several offers ‘from various investment banks.’
[…] so we can simply pay without issuing another Eurobond in the traditional market and we can go find a bond that is denominated in dollars and receives payments in bitcoin as such. We think we have enough offers.Alejandro Zelaya, Finance Minister, said
Mr. Zelaya also hinted at increased interest in El Salvador’s digitized dollar-denominated bonds. ‘ the government will meet with a delegation of investors interested in buying the bond,’ he told El Mundo.
Bitcoin Price Charts
Meanwhile, Bitcoin prices failed to break above the $48,000 resistance as the world’s largest crypto continues to move laterally. After Bitcoin’s price fell below $50,000 on Dec 28, BTC consolidated above $45,000. Although BTC denominated open interests surpassed its Nov highs, Bitcoin’s price action lacks steam.
Bitcoin price faces immediate resistance at $48,000, near BTC’s 200-day MA line. Further resistance for Bitcoin prices comes at $48,990, a little above Bitcoin’s 26-day EMA trendline. Moreover, the $50,000 resistance, near BTC’s 50-day EMA, holds strong for Bitcoin as prices have failed to move above it since Dec 4.
Bitcoin prices are bearish across all time horizons. BTC has tested support at $45,500 multiple times since Dec 4. However, if prices break below the $45,000 resistance level, BTC would likely fall to $43,000 before recovering. The relative strength index for Bitcoin is currently neutral, clocking 39.87 on the daily charts.
Meanwhile, trend-based momentum oscillator MACD is currently bullish for Bitcoin, but the bars on the MACD histogram are barely above zero. The contracting bars indicate weakening bullish momentum for Bitcoin. In addition, the declining volumes show that retail investor interest has fallen too.
In detail, the MACD histogram plots the difference between the MACD line (difference of 12-day and 26-day EMA) and its signal line (9-day EMA of MACD).
At the time of writing, BTC was trading at $46,147, up 0.23% on the day.