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RT @TranslatingES: Approval of Investment Banking Law in El Salvador Boosts Bitcoin Rise

The approval of the Investment Banking Law in El Salvador has become one of the key catalysts for Bitcoin's recent rally, according to websites that monitor the crypto market.

The price of Bitcoin (BTC) remains above $120,108, and overnight yesterday and early this morning reached $122,321.10, approaching its all-time high of $123,091.61 recorded on July 14. Various specialized portals agree that the recent passage of the Investment Banking Law in El Salvador is among the main reasons for the rally.

CoinMarketCap noted that one of the key factors behind this increase is the "regulatory momentum" stemming from the new law, which "boosts hopes for institutional adoption" and strengthens the country's role as a digital currency hub. CoinGecko, for its part, stated that "the BTC price demonstrates growing institutional confidence" and that Bitcoin initiatives in El Salvador have taken advantage of "multiple key regulatory frameworks" to reach levels close to a new all-time high.

The legislation, approved on August 7, allows for the creation of regulated investment banks that will be able to hold Bitcoin reserves, issue securities, and offer financial products based on the digital asset. Although the possibility of operating with other digital assets such as stablecoins is also contemplated, the central focus of the regulation is Bitcoin. These entities must have a minimum capital of $50 million and obtain licenses as Digital Asset Service Providers, which provides a solid and attractive legal framework for high-net-worth investors.

https://twitter.com/bitcoinofficesv/status/1954581422632554804

Analysts maintain that this reform positions El Salvador as a potential regional hub for Bitcoin banking and investment, at a time when the country already has 6,265 BTC in its treasury, equivalent to $753.8 million at the current price.

The international context has also contributed to this rally. An executive order signed by Donald Trump on Friday would allow Bitcoin to be included as an investment option in 401(k) retirement funds in the United States, opening a massive inflow of institutional capital. Added to this is the news that Harvard University has made significant purchases of Bitcoin-linked ETFs, reinforcing the perception of the digital currency as a legitimate asset of interest to large investors.

From a technical perspective, CoinMarketCap highlighted that "$14 billion in short positions could be liquidated if BTC surpasses $125,000," which could accelerate gains.

Up 1.18% in the past 24 hours and 4.6% in the past week according to CoinMarketCap, the market is closely watching to see whether Bitcoin will be able to flip the $120,500 resistance into support, which could pave the way for a new all-time high in the coming days.
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Article: @elsalvador By: @kealrive22
Translation: @TranslatingES