Bitcoin Price Boost? Argentina’s President Paves the Way for BTC Payments in 2025

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Arslan Butt

Crypto Writer

Arslan Butt

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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...

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Last updated: 

December 13, 2024

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Bitcoin (BTC), the world’s most popular cryptocurrency, is witnessing sustained bullish momentum, briefly surging to $102,507 before stabilizing around $100,364.

This positive trend is fueled by key factors such as growing institutional confidence, exemplified by BlackRock’s 2% Bitcoin portfolio recommendation, and a surge in Bitcoin ETF inflows exceeding $50 billion.

Adding to the optimism, Argentina’s President Javier Milei plans to allow Bitcoin as legal currency in 2025.

Argentina’s Bitcoin Adoption Plan for 2025

Argentina’s President Javier Milei has unveiled an ambitious plan to allow all currencies, including Bitcoin (BTC), to circulate freely starting in 2025. This policy aims to give Argentinians the freedom to choose their preferred payment method, promoting financial flexibility.

Milei’s pro-crypto stance mirrors El Salvador’s Bitcoin adoption but is tailored to address Argentina’s unique economic challenges.

In addition to supporting cryptocurrency, Milei has proposed cutting national taxes by 90%, enabling provinces to establish their own tax rules. This tax reform seeks to reduce the federal government’s economic role, foster local growth, and incentivize investment.

Experts believe these measures could position Argentina as a key player in global cryptocurrency adoption.

However, challenges persist. Ricardo Mihura of Bitcoin Argentina notes that disparities in tax treatment compared to the dollar or euro could hinder Bitcoin’s practical use. Despite this, the announcement has ignited optimism in the crypto community.

Bitcoin ETFs and Institutional Momentum

Institutional investments continue to bolster Bitcoin’s price trajectory. BlackRock’s recommendation for a 2% Bitcoin allocation in portfolios has increased interest in crypto ETFs, which saw $50.5 billion in net inflows during their first year. Bitcoin ETFs now boast over $100 billion in assets, providing investors with a secure and regulated way to access the cryptocurrency market.

This institutional confidence is further amplified by macroeconomic trends. The U.S. November CPI report, for instance, drove Bitcoin prices above $101,000, reflecting optimism around the asset as a hedge against inflation.

Analysts predict that 2025 will see even greater institutional demand, with sovereign wealth funds, pension funds, and endowments increasing their Bitcoin holdings.

South America’s Crypto Growth

Argentina’s pro-crypto policies are part of a broader trend in South America, where cryptocurrency adoption is accelerating. Brazil is developing a national digital currency, and Venezuela’s crypto market surged 110% in 2024. These developments position the region as a potential global leader in cryptocurrency innovation.

Key highlights of Argentina’s 2025 crypto reforms include:

• Free circulation of all currencies, including Bitcoin.
• 90% reduction in national taxes, promoting economic flexibility.
• Support for financial autonomy and local economic growth.

Political and regulatory shifts, including potential U.S. policy changes, are expected to further support Bitcoin adoption globally. With Argentina’s initiatives and growing institutional backing, Bitcoin’s price could see significant growth in 2025, solidifying its role as a global financial asset.

Bitcoin Holds Above $101,000 as Upward Channel Supports Bullish Momentum

Bitcoin is trading at $101,750, showing a minor decline of 0.34% in the last 24 hours. The asset continues to hover within a well-defined upward channel, finding strong support near the $100,050 mark while facing resistance around $102,600.

Buyers appear to dominate above the psychological level of $101,000, bolstered by the 50-day EMA, which is trending positively.

The Relative Strength Index (RSI) is near 59, indicating a moderate bullish momentum as BTC stays within its ascending trendline. Immediate resistance at $102,600 could pave the way for a test of $104,000 if breached.

On the downside, a failure to sustain above $101,000 may expose Bitcoin to support levels at $100,000 and $98,500.

Overall, the upward channel structure underpins the bullish bias, with traders keeping an eye on breakout levels for the next directional move.

Key Insights:

• Immediate Resistance: $102,600; potential breakout to $104,000.
• Immediate Support: $101,000; failure risks drop to $98,500.
• RSI near 59 reflects moderate bullish momentum.

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