El Salvador's recent legislative reform to its 2021 Bitcoin Law has introduced significant changes, notably making Bitcoin acceptance voluntary in private transactions and reducing the government's involvement in its usage. This move is seen as a strategic alignment with the International Monetary Fund's (IMF) conditions for a potential $1.4 billion program, aimed at enhancing fiscal and external stability. The reform, enacted on January 29, 2025, is expected to influence Bitcoin's market dynamics, as it signals a shift in the country's approach to cryptocurrency, potentially affecting investor sentiment and market volatility.
The ProShares Ultra Bitcoin ETF (BITU) experienced a slight decline, dropping 0.87% to $60.23 at 10:00 AM on Friday, January 31.