Bitcoin price analysis: Is the bull run over?
Reports suggest that Paraguay is all set to follow in El Salvador's footsteps and recognize Bitcoin as legal tender.
- Despite its ongoing upward push, BTC is still showcasing bi-weekly losses of just under 5%
- Experts believe that the market at large may start to showcase bullish signals in the near term.
- US-based crypto firm Athena is all set to roll out 1500 Bitcoin ATMs across El Salvador over the course of the coming year.
The last twenty four hours have been quite eventful for Bitcoin, with the world's largest cryptocurrency by total market capitalization showcasing an overnight turnaround of over 7%, rising from a price point of around AU $42,800 to over the AU $46,800 mark, albeit briefly. At press time, the digital asset is trading for AU $46,000.
Providing his thoughts on the subject, Jay Hao, CEO of cryptocurrency exchange OKEx, told Finder that the market as a whole is currently witnessing a "purge of sorts", as a consequence of which there have been many value swings across the board, adding:
"Bitcoin's recent volatility is a result of China's crackdown and a general loss of market confidence following the mid-May crash. However, this week we saw stablecoin reserves across exchanges rising, and that is generally an indication of short to mid-term price recovery."
He further opined that BTC's ongoing recovery may help spur the sentiment of the market at large into an overly bullish mode of operation (most likely in the near-to-mid term. "It is likely that we will see consolidation in this range as the market awaits catalysts that can once again push prices over the tipping point for a bull run," he closed out by saying.
A closer look at the ongoing run
Bitcoin's latest upward ascent seems to have come close in the heels of United States President Joe Bident revealing that his team had been able to successfully come to an agreement — regarding a whopping $953 billion bipartisan infrastructure spending plan — with the Senate. As was to be expected, following the announcement, the S&P 500,Dow and Nasdaq rallied massively, gaining 24.65, 97.98 and 322 points respectively.
Not only that, even the crypto market seems to have responded quite positively to the development, with the total capitalization of the space rising from just under $1.35 trillion to $1.46 trillion, thereby showcasing a growth of over 7% within a matter of hours.
Lastly, it also bears mentioning that Paraguayan lawmakers are reportedly in the process of tabling a bill that seeks to make BTC legal tender within the nation's borders. Not only that, after it was recently revealed that El-Salvador had started recognizing Bitcoin as a legitimate monetary asset, U.S. firm Athena released a statement showcasing its intention to provide the country with a total of 1500 Bitcoin ATMs.
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Disclosure: The author owns a range of cryptocurrencies at the time of writing