El Salvador's recent legislative reform to its 2021 Bitcoin Law has sparked discussions about its potential impact on Bitcoin's market dynamics. The reform, which makes Bitcoin acceptance voluntary in private transactions and reduces the government's involvement in its usage, is seen as a strategic move to align with the International Monetary Fund's conditions for a $1.4 billion program. This development has introduced a degree of uncertainty in the market, as investors assess the implications of reduced governmental support for Bitcoin in El Salvador, a country that has been a significant proponent of the cryptocurrency.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a modest increase, rising 0.61% to $21.35 at 10:00 AM on Friday, January 31.