According to the unconfirmed sources, Honduras may officially adopt Bitcoin by giving it a legal tender status. Honduras President, Xiomara Castro may make the announcement within hours.
Honduras may follow the steps of El Salvador in adopting Bitcoin . The impact such news may have on BTCUSD is unclear at this stage. The focus of the crypto markets is on the upcoming regulations, which includes NFTs and possibly the metaverse.
India's 30% tax on cryptocurrencies profits will commence in April. This is on top of the 1% tax deduction at source (TDS). India will tax 1% TDS on all transactions in cryptocurrencies.
Bitcoin is still looking for a direction, BTCUSD weekly chart will be shortly presented.
How Will Honduras Affect Bitcoin?
In August 2021, Honduras opened the first Bitcoin ATM in the capital of Tegucigalpa by Honduran firm TGU Consulting Group. The ATM, nicknamed by the locals as 'la bitcoinera' allowed to purchase ETH and BTC using the local currency.
When El Salvador only considered adopting Bitcoin a positive reaction was seen in the markets. By paying attention to BTCUSD a tight price range is noted.
source: btcusd weekly chart, tradingview
The war between Russia and Ukraine is also weighing on BTC. Based on current market conditions, Honduras intentions to provide Bitcoin a legal tender status may not have a significant impact on market price.
However, in the event, other countries announce this week that they may follow suit, a more substantial reaction may take place. A break above $45,535 may be required based on the weekly chart.
source: btcusd 60min chart, tradingview
BTCUSD hourly chart shows the price is 'compressed' between the support and resistance levels. As an intraday breakout materializes, BTC may choose its hourly trend.
A bearish breakout (below the blue line) may drive significantly lower than a bullish breakout (above the purple line).
