Since the move from El Salvador, the leaders of developing countries, including Mexico, Argentina, Paraguay, Brazil, and Panama, have hinted at following suit. This shift has come to be known as the ‘El Salvador effect’.
What El Salvador says
The 21st century global monetary solution is a digital currency (USD) serving as a medium of exchange backed by a digital asset (BTC) serving as a store of value, with #Bitcoin as the final settlement network and #Lightning as the transaction network. El Salvador is the model. https://t.co/xBjABPnZBJ
— Michael Saylor (@michael_saylor) June 11, 2021
El Salvador has long been friendly towards Bitcoin activity within its borders. In the beach town of El Zonte, as part of the Bitcoin Beach project, numerous businesses accept BTC as payment. Salvadoran President Nayib Bukele has noted Bitcoin Beach as an inspiration for proposing the Bitcoin law.
Bukele says that Bitcoin “will generate jobs and help provide financial inclusion to thousands outside the formal economy.” It will also address the issue of costly remittance payments from Salvadorans living abroad, making up a fifth of the country’s gross domestic product (GDP). Experts have long touted the revolutionary potential of the blockchain, which underpins Bitcoin and other cryptocurrencies, in helping ease cross-border payments.
How will it work? Apart from “all economic agents” having to accept BTC as payment, the Salvadoran government will guarantee the convertibility of Bitcoin into dollars for any transaction, using a $150-million trust established by El Salvador’s Bandesal development bank.
Detractors have raised issues surrounding Bitcoin’s volatility, while economist and historian George Selgin noted that certain clauses in the legislation are coercive in forcing Salvadoran merchants and companies to accept Bitcoin as payment. These are all valid concerns, which, along with the promises of such a system, will play out in real-time over the next few months and years.
STATE OF CRYPTO 2025 – THE THEMES THAT DEFINED THE YEAR
There was a very real, tangible shift for cryptocurrency in 2025 from the periphery of the financial industry toward the centre. Big institutional partnerships were announced, banks launched tokenisation initiatives, and #Bitcoin made new highs without much fanfare, which is telling of how far the industry has come.
Considering the year that was, the developments that moved the needle, and those that didn’t, here are the key themes that defined crypto in 2025.
THE UPCOMING BITTENSOR HALVING, THE FED’S RATE DECISION, AND GREEN CANDLES TO START THE WEEK
Crypto markets are broadly in the green to start the week, with the total crypto market cap up ~2% overnight and Bitcoin and others following a similar trend. Pulling back, things are looking increasingly better for December than last month. Bitcoin is up ~6.8% over seven days, while #Ethereum (ETH) has added ~10% over the same period. Others like #Cardano (ADA) and #Chainlink (LINK) have also added 10%+ over the week. The scars from last month’s correction are still there when looking at the 30-day price moves, but it’s improving.
As the #Bittensor (TAO) halving approaches, set for 14 December, the TAO price has seen a healthy rally, with 7% gains overnight and ~12% over the week. The decentralised AI network is heading into its first halving event, which, similar to Bitcoin, also happens every four years. Read more about this event below.
Otherwise, it’s set to be a busy week on the economic calendar, with the Fed interest rate decision scheduled for Wednesday, 10 December, followed by the FOMC economic projections.
To kickstart the week, here’s a quote by Bloomberg ETF analyst Eric Balchunas posted on X yesterday: “Here’s why I personally would not compare bitcoin to tulips (no matter how bad the selloff). Tulips rose and collapsed in like 3 yrs. Punched once in face and KO’d. Bitcoin has come back from like 6–7 haymakers to reach ATHs and has survived 17 yrs. The endurance alone warrants shedding the Tulip comp, let alone the fact that it’s STILL up like 250% past 3 yrs and was up 122% last year. The thing is some ppl just hate this asset and want to enrage the ppl who like it. That will prob never change.”
CRYPTO SLIDES AS BOJ ANNOUNCED POSSIBLE RATE HIKE, AND ETHEREUM EYES FUSAKA UPGRADE
Bitcoin drops from ~$91K to ~$86K as markets test resistance between $90K–$92K, with Ethereum and other crypto assets also losing ground.
Bank of Japan announced a potential December rate hike.
US markets remain relatively stable, though Wall Street is yet to open.
Ethereum’s Fusaka upgrade, designed to boost network performance and scalability, is expected Wednesday, though timelines have shifted in the past. Just as things were looking steady last week, this week opens with a 4-6% slide across crypto markets as November’s volatility refuses to fade. Analysts have flagged a resistance zone between $90,000 and $92,000 for Bitcoin, and it played out this morning as the market-cap leader pulled back from roughly $91,000 to about $86,000 within hours. Ethereum and others followed lower overnight.
Some traders pointed to the Bank of Japan’s signal that it could consider a rate hike in December, a move that in the past has triggered global de-risking, with the mid-2024 unwind of the yen carry trade still fresh in memory. Wall Street has remained largely untouched so far, though US markets only open around mid-day. More on that below.
Otherwise, the big development this week is the looming Ethereum upgrade known as Fusaka, aimed at improving performance and scalability by optimising how data is stored and processed. It’s part of the original smart-contract platform’s push to stay competitive as rivals like Solana encroach on its core markets. The upgrade is expected on Wednesday, though Ethereum timelines have been known to slip at the last minute
CRYPTO SLIDES AS BOJ ANNOUNCED POSSIBLE RATE HIKE, AND ETHEREUM EYES FUSAKA UPGRADE
Bitcoin drops from ~$91K to ~$86K as markets test resistance between $90K–$92K, with Ethereum and other crypto assets also losing ground.
Bank of Japan announced a potential December rate hike.
US markets remain relatively stable, though Wall Street is yet to open.
Ethereum’s Fusaka upgrade, designed to boost network performance and scalability, is expected Wednesday, though timelines have shifted in the past. Just as things were looking steady last week, this week opens with a 4-6% slide across crypto markets as November’s volatility refuses to fade. Analysts have flagged a resistance zone between $90,000 and $92,000 for Bitcoin, and it played out this morning as the market-cap leader pulled back from roughly $91,000 to about $86,000 within hours. Ethereum and others followed lower overnight.
Some traders pointed to the Bank of Japan’s signal that it could consider a rate hike in December, a move that in the past has triggered global de-risking, with the mid-2024 unwind of the yen carry trade still fresh in memory. Wall Street has remained largely untouched so far, though US markets only open around mid-day. More on that below.
Otherwise, the big development this week is the looming Ethereum upgrade known as Fusaka, aimed at improving performance and scalability by optimising how data is stored and processed. It’s part of the original smart-contract platform’s push to stay competitive as rivals like Solana encroach on its core markets. The upgrade is expected on Wednesday, though Ethereum timelines have been known to slip at the last minute
CRYPTO SLIDES AS BOJ ANNOUNCED POSSIBLE RATE HIKE, AND ETHEREUM EYES FUSAKA UPGRADE
Bitcoin drops from ~$91K to ~$86K as markets test resistance between $90K–$92K, with Ethereum and other crypto assets also losing ground.
Bank of Japan announced a potential December rate hike.
US markets remain relatively stable, though Wall Street is yet to open.
Ethereum’s Fusaka upgrade, designed to boost network performance and scalability, is expected Wednesday, though timelines have shifted in the past. Just as things were looking steady last week, this week opens with a 4-6% slide across crypto markets as November’s volatility refuses to fade. Analysts have flagged a resistance zone between $90,000 and $92,000 for Bitcoin, and it played out this morning as the market-cap leader pulled back from roughly $91,000 to about $86,000 within hours. Ethereum and others followed lower overnight.
Some traders pointed to the Bank of Japan’s signal that it could consider a rate hike in December, a move that in the past has triggered global de-risking, with the mid-2024 unwind of the yen carry trade still fresh in memory. Wall Street has remained largely untouched so far, though US markets only open around mid-day. More on that below.
Otherwise, the big development this week is the looming Ethereum upgrade known as Fusaka, aimed at improving performance and scalability by optimising how data is stored and processed. It’s part of the original smart-contract platform’s push to stay competitive as rivals like Solana encroach on its core markets. The upgrade is expected on Wednesday, though Ethereum timelines have been known to slip at the last minute.
🇺🇸 #BTC$BTC Industry Pushes Trump to Secure U.S. Leadership
Over 65 crypto companies - including Solana Policy Institute, Exodus, Pantera, and Uniswap Labs - sent a joint letter to President Trump. Their goal? Protect innovation, clarify rules, and keep the U.S. ahead in crypto. Top requests:
🚀 Tax clarity: only tax staking & mining rewards when sold; clear rules for bridging, wrapping, airdrops, forks, and collateral.
🚀 Regulatory support: SEC & CFTC to back self-custody; safe harbors & regulatory sandboxes for DeFi projects; better coordination across agencies for faster guidance.
🚀 Developer protections: stop “regulation by prosecution; support open-source projects; protect innovation and free expression in crypto software.
📈 This is shaping up as a turning point in U.S. crypto BTC$BTC policy, signaling that regulators and industry are pushing for a framework that protects innovation while keeping the U.S. competitive globally.
Bitwise’s spot XRP ETF started trading yesterday in what’s been a rough week for crypto markets.
“XRP is a really intriguing asset for several reasons,” said Bitwise CIO Matt Hougan. “It has operated successfully for a very long period of time at extremely low cost, it processes high transaction volumes, and it has a really strong and vibrant community of supporters.
Bitwise’s fund will be the second spot XRP product following Canary Capital’s XRPC. “Canary’s fund has accumulated $276.8 million in net inflows since launching last week,” The Block reports. Bitwise already launched the Bitwise Physical XRP ETP (GXRP) in Europe that provides investors with direct, physically-backed exposure to the cryptocurrency.
US President Donald Trump restarted the trade fight with China. He announced plans to double tariffs on Chinese goods coming into the US and put new limits on exports of important software, in response to China restricting its sales of key minerals. The new measures will reportedly take effect by 1 November, days before the current tariff relief ends.
“Trump’s unexpected broadside shook global financial markets, sending the benchmark S&P 500 Index sliding by more than 2%, its biggest one-day drop since April when a steady barrage of tariff announcements by Trump stoked market volatility,” Reuters reports.
What does this mean for crypto?
Crypto and stock markets saw massive losses following the news, with the prices of some altcoins dropping by 20% and more. Markets have been searching for solid ground since then.