El Salvador's new law ignites institutional demand, Bitcoin could hit $130,000.

El Salvador passed the "Investment Banking Law" on August 7, allowing licensed institutions to hold Bitcoin BTC and other digital assets on their balance sheets, and only collaborate with "mature investors." This move is seen as a significant step in transforming the country into a regional Crypto Assets center and may also bring new upward momentum for Bitcoin prices.

The Investment Banking Act Opens Institutional-Level Bitcoin Investment Channels

The new law separates investment banks from commercial banks and grants them the power to operate with legal tender, foreign currencies, and digital assets (including BTC).

Licensed institutions must have a capital of at least 50 million USD and provide services only to "sophisticated investors" who possess market knowledge and at least 250,000 USD in investable assets.

Juan Carlos Reyes, chairman of the El Salvador Digital Assets Commission, stated that the law allows banks to operate entirely with Bitcoin at its core and opens the door for tokenized bonds, stablecoin services, and crypto-based project financing.

International Cooperation and Regional Encryption Strategy Expansion

El Salvador's Bitcoin strategy is not limited to domestic reforms. Recently, President Nayib Bukele met with Pakistan's Minister of State for Crypto Assets and Blockchain, Bilal Ben Saki, to discuss collaboration on promoting mining and energy policies at the national level.

In addition, on July 30, the Central Bank of Bolivia signed a memorandum with the regulatory agency of El Salvador to address the shortage of US dollars and promote the use of Crypto Assets. Paolo Ardoino, CEO of Tether (USDT), pointed out that Bolivians are turning to dollar-backed stablecoins as a medium of exchange.

These measures indicate that El Salvador is trying to establish a Bitcoin central position in the global financial network while expanding the internal market scale.

Bitcoin technical outlook is bullish, target 130,000 USD

(Source: Trading View)

As of the latest trading day, BTC has pumped 0.28% to 118,059 USD, breaking out of the bullish flag pattern formed after several weeks of consolidation.

Technical key points:

Support level: 50-day SMA ($113,732)

Breakthrough level: $117,350 (23.6% Fibonacci retracement level)

Short-term target: 123,250 USD → 127,000 USD

Medium-term target: 130,000 USD

The MACD has shown a bullish crossover and turned positive, with the RSI at 57, indicating there is still room for upward movement. If the price retraces to support, $113,678 and $110,721 (38.2% and 50% Fibonacci retracement levels) may attract dip buyers.

Strategies and Market Outlook

For traders, a potential strategy is to accumulate on dips in the range of $117,000 to $115,000, set a stop loss below $110,000, and target a price of $130,000.

If the macro economy is favorable, and the ETF capital inflows align with the institutional push from El Salvador, Bitcoin is expected to experience a larger pump before the end of the year, potentially starting a new parabolic rally.

Conclusion

El "Investment Banking Law" de El Salvador ha abierto un nuevo canal para la inversión en Bitcoin a nivel institucional, y a través de la cooperación internacional ha consolidado aún más su posición como centro de Crypto Assets. Combinando una estructura técnica alcista con un entorno macro favorable, Bitcoin se dirige hacia los 130,000 dólares, y los inversores podrían estar en el punto de partida de la próxima gran tendencia.