Starting this post with the disclaimer that I do know world events or political news do not completely control where the market will go. However, we can't deny that these news still have some bearing on how the market looks like. I firmly stand by the belief that even without Trump winning and promising all good there is towards bitcoin, bitcoin would still have reached $100k either way. But Trump winning did speed up the process so this is the kind of bearing I am talking about.
El Salvador is one of the countries with most bitcoins and unlike other countries, A lot of the bitcoins they hold are coins they actually bought willingly and not just seized from criminal arrests. They are at the forefront of adopting bitcoin making it their legal tender and their president actively pushing for bitcoin's adoption in their country. We often talk about El Salvador in this forum and we praise all the progress they are making but the truth is they are not as nearly as influential as the USA. Can you imagine the effects if it was the US that made bitcoin as their legal tender? The reactions would be a lot bigger than the reaction of that from El Salvador.
Which got me to think about the possible consequences if El Salvador were to ever announce that it is selling its bitcoins and plans to never buy any more? I am aware that the possibility of that is low since El Salvador has always expressed interest towards bitcoin but just hypothetically, how much would bitcoin be affected if El Salvador does not show support any more?
That will not have a very big effect. However, something like USA banning bitcoins can have huge short term effect. In the long term, crypto will still keep growing. Look at the ban by China which is a major economy in the world. Even after that bitcoin prices have grown at good rates.