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El Salvador makes BTC legal tender, encouraging buyers of Bitcoin forks

2021.06.09 Adam James

The effects of Bitcoin’s milestone event are being seen in the altcoin market, where forked coins are outperforming. 

The total cryptocurrency market capitalization has increased 3.3% to $1.6 trillion today on the news that El Salvador has officially become the first country to adopt BTC — which is up 5% over the past 24 hours — as legal tender.

The altcoin market, at the same time, is a mixed bag. Second-ranked cryptocurrency ETH is virtually flat on the day, while SOL is up 18.8% and ICP is down 7.2%.

The cryptocurrency market is a mixed bag today as BTC outperforms most altcoins. Source: Coin360

DeFi market stagnates as focus shifts to Bitcoin

The decentralized finance market is relatively flat on the day, in line with the price of ETH. The total value locked in DeFi is currently $59.11 billion, with market-leading Aave having added 1.71%.

The decentralized exchange race has been uneventful over the past 24 hours. Curve Finance has lost more than 3.5% in TVL but still remains comfortably in first place.

The total value locked in decentralized exchanges is hovering around $20 billion. Source: DeFi Pulse

Top altcoin gainers and losers: Bitcoin forks outperform

  • BTG/USDT +38.88%
  • BCD/USDT +26.65%
  • TOPC/USDK +24.30%
  • STRK/USDT -8.61%
  • VSYS/USDT -11.38%
  • TRADE/USDT -11.86%

Bitcoin forks are outperforming on OKX today, with BTG, BCD and SBTC among the biggest gainers. This is likely due to the mainstream media’s focus on the news out of El Salvador today — which may be spurring on some buying for anything with “Bitcoin” in the name.

BTG is the top-performing altcoin on OKX today. Source: OKX

BTC technical analysis: El Salvador news encourages buyers

The price of BTC has found buyers in the area of critical support around 30,000 USDT. It may find resistance here at the four-hour ribbon of exponential moving averages, but a successful breakthrough opens the door to a push toward 40,000 USDT.

The BTC market is proving to be highly influenced by mainstream news, so it is worth keeping an eye on headlines as mainstream media digests the milestone event out of El Salvador.

OKX’s BTC/USDT 4h chart — 6/09. Source: OKX, TradingView

ETH technical analysis: Breaking down against BTC

The market’s renewed focus on BTC has caused ETH to break down against the leading cryptocurrency. The foremost altcoin is now trading underneath the four-hour EMA ribbon — a short-term bearish indicator.

OKX’s ETH/BTC 4h chart — 6/09. Source: OKX, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.