Bitcoin continues to make significant strides globally, reaching a new all-time high of $107,700 amid growing institutional demand and steady ETF inflows. At the same time, El Salvador, the first country to adopt Bitcoin as legal tender, has authorized crypto exchange Bitget to offer Bitcoin-related services, further solidifying its role as a hub for crypto innovation.
Bitget Secures Bitcoin Service Provider License in El Salvador, Strengthening Nation’s Crypto Ecosystem
Crypto exchange Bitget has achieved a significant milestone by becoming an authorized Bitcoin service provider in El Salvador, further solidifying the Central American nation’s status as a global leader in Bitcoin adoption. The announcement on Dec. 16 confirms that Bitget has secured a Bitcoin Service Provider (BSP) license from El Salvador’s Central Reserve Bank, marking a crucial step for the exchange’s expansion into Latin America.
The newly acquired license enables Bitget to offer a wide range of Bitcoin-related services in El Salvador, including fiat-to-Bitcoin currency exchanges, payment services, and secure custody solutions for its growing user base in the country. This development aligns with El Salvador’s broader digital asset strategy as the nation continues to embrace Bitcoin as a cornerstone of its financial innovation.
While Bitget now holds the BSP license, the exchange is also pursuing a digital asset service provider license from El Salvador’s National Commission of Digital Assets. This additional regulatory approval would allow Bitget to expand its services beyond Bitcoin, enabling the trading of other digital assets and bolstering the country’s position as a regional crypto hub.
Min Lin, Bitget’s Chief Business Officer, emphasized the strategic importance of this move, stating, “Latin America holds immense promise as a hub for crypto innovation, and El Salvador stands out as a pioneer with its bold embrace of Bitcoin as legal tender. […] As the world’s interest in crypto accelerates, we see El Salvador as a gateway to unlocking crypto’s potential.”
Bitget’s foray into El Salvador comes at a time when Latin America is emerging as a fertile ground for crypto innovation. El Salvador, in particular, has played a pioneering role since its historic decision to adopt Bitcoin as legal tender in September 2021. The nation’s progressive stance has attracted global investors and businesses looking to capitalize on its crypto-friendly regulatory environment.
Headquartered in Seychelles, Bitget has rapidly scaled its operations, boasting over 45 million users worldwide. The company has successfully secured licenses in Poland and Lithuania as a Virtual Asset Service Provider (VASP), demonstrating its commitment to regulatory compliance in key markets. Additionally, Bitget resumed operations in the United Kingdom in November 2023, following a brief restriction period earlier this year due to local regulatory adjustments.
The exchange has also made significant inroads into Vietnam, where it recently established a new subsidiary, reflecting its ambition to capture emerging markets in Asia alongside its strategic expansion in Latin America.
Bitget’s entry into El Salvador coincides with the country revisiting its landmark Bitcoin law. Reports indicate that El Salvador is in negotiations with the International Monetary Fund (IMF) for a $1.3 billion loan. As part of the deal, El Salvador may amend its Bitcoin law to make Bitcoin acceptance by businesses voluntary rather than mandatory. This adjustment signals a balanced approach to promoting Bitcoin adoption while addressing international financial requirements.
Despite these changes, El Salvador’s commitment to Bitcoin remains steadfast. The nation has steadily increased its Bitcoin reserves since making the cryptocurrency legal tender. As of Dec. 16, El Salvador holds 6,189 BTC, currently valued at approximately $602 million, according to data from the Nayib Bukele Tracker.
Expanding International Collaboration
El Salvador’s strategy extends beyond its domestic policies. The government is actively forging international partnerships to promote cryptocurrency adoption on a global scale. Recently, El Salvador signed a mutual collaboration and training agreement with Argentina, focusing on digital assets and knowledge-sharing. This agreement is part of a broader effort to create a unified global approach to crypto regulations and innovation.
El Salvador’s outreach continues with discussions involving over 25 countries to establish similar partnerships. Bitget’s entry into El Salvador marks a pivotal moment for both the crypto exchange and the nation. By securing the Bitcoin Service Provider license, Bitget is positioning itself to play a key role in El Salvador’s evolving Bitcoin ecosystem and Latin America’s broader crypto market.
As negotiations with the IMF progress and international collaborations expand, El Salvador continues to shape its identity as a trailblazer in Bitcoin adoption and financial innovation.
With its growing global user base and strategic regulatory approvals, Bitget’s success in El Salvador may encourage further investments from other crypto businesses, solidifying the country’s role as a hub for Bitcoin and digital assets.
Bitcoin Soars to New All-Time High Above $107,700 Amid Explosive Demand and Institutional Buying
Meanwhile, Bitcoin (BTC) continued its meteoric rise over the weekend, hitting a new all-time high of $107,700 on Dec. 16. This latest surge comes amid robust spot trading volumes, increasing institutional inflows, and renewed enthusiasm from both US and global markets.
The price action saw Bitcoin break through key sell walls between $103,000 and $104,000, catalyzed by significant spot pushes on Binance and surging perpetual futures trading on KuCoin. Traders seized the opportunity to push BTC to record highs, marking another milestone for the leading cryptocurrency as demand continues to skyrocket.
A major driver of Bitcoin’s rally has been the return of the Coinbase Premium during the US trading session. This metric, which reflects a price gap favoring the US-based exchange Coinbase, indicates strong demand from institutional and retail investors in the United States. Historically, the presence of a Coinbase Premium has signaled bullish sentiment and buying momentum, as US investors often pay a premium for Bitcoin during surges.
This renewed US buying activity builds on the weekend’s explosive momentum, where Binance and KuCoin played central roles in driving BTC’s price action. On Dec. 15, the strong perpetual futures volumes on KuCoin coupled with spot buying on Binance helped BTC push decisively past $104,000, triggering a cascade of buy orders that propelled the price higher.
Positive institutional news added further fuel to Bitcoin’s price rally. On Dec. 16, two major corporations made significant Bitcoin purchases, suggesting a growing appetite among institutional investors for BTC as a store of value and hedge against macroeconomic uncertainty.
Semler Scientific, a healthcare company, purchased 211 BTC for $21.5 million, at an average price of $101,890 per coin.
MicroStrategy, led by Bitcoin advocate Michael Saylor, acquired an additional 15,350 BTC for $1.5 billion, at an average price of $100,386 per coin.
These acquisitions point to continued confidence in Bitcoin’s long-term value. MicroStrategy, which now holds a substantial Bitcoin treasury, has been a key proponent of BTC as a reserve asset. The company’s ongoing accumulation reinforces Bitcoin’s role as a critical asset in corporate balance sheets.
Massive Inflows Into Bitcoin ETFs
The growing adoption of spot Bitcoin exchange-traded funds (ETFs) has also been a major factor driving Bitcoin’s ascent to new highs. According to data from SoSoValue, the week ending Dec. 12 saw $2.17 billion in net inflows into Bitcoin ETFs. These inflows brought the total net assets under management to an impressive $114.97 billion, reflecting a surge in investor demand for regulated Bitcoin investment vehicles.
Independent researcher Timothy Peterson attributed Bitcoin’s current trajectory to ETF fund flows, predicting that BTC’s price is on track to hit $115,000 in the near term.
According to market analyst Willy Woo, the past month has seen over $3 billion per day flowing into the Bitcoin network. This massive influx highlights the sustained demand for BTC across market participants, driven by institutional adoption, macroeconomic hedging strategies, and investor confidence in Bitcoin as a scarce, deflationary asset.
The return of the Bitcoin bull market has reignited enthusiasm among traders and investors, with BTC firmly positioned as a hedge against inflation and economic uncertainty. The current momentum has been formed by a convergence of factors, including:
Institutional confidence and corporate adoption.
Growing demand for regulated investment products like spot Bitcoin ETFs.
The return of strong spot trading volumes on major exchanges.
Renewed optimism fueled by Bitcoin’s scarcity and its role as digital gold.
With Bitcoin’s recent price surge and the sustained inflows into ETFs, analysts predict further upside for BTC in the coming weeks. The $115,000 price level has emerged as a potential near-term target, with institutional demand and growing global adoption acting as key drivers.
Bitcoin’s ability to break through psychological resistance levels like $100,000 and $107,000 demonstrates the strength of its upward trajectory. As market conditions remain favorable, BTC appears poised to set new all-time highs, continuing its role as the world’s premier digital asset.
This article was originally Posted on Coinpaper.com
