The cryptocurrency rose to as high as $46,317 at around 02:00 UTC, according to CoinDesk 20 data. At the time of writing, the price has since dropped slightly to $45,975. The last time bitcoin was trading above $46,000 was on May 17. The world’s largest cryptocurrency by market value had been stuck in a narrow range of $30,000 to $40,000 for more than two months, before breaking out in the past week.
This recent surge in the price of bitcoin comes after El Salvador became the first country to adopt bitcoin as legal tender. The Central American nation’s congress on Wednesday approved President Nayib Bukele’s proposal to embrace the cryptocurrency, with 62 out of 84 votes in favor of the move. Bukele said in a tweet that the decision would “bring financial inclusion, investment, tourism, innovation and economic development for our country.” The move to make bitcoin legal tender in El Salvador could potentially lead to more widespread adoption and use of the cryptocurrency, thus driving up its price.
In addition to the news from El Salvador, there have been other positive developments in the cryptocurrency market that have likely contributed to bitcoin’s recent price surge. For example, billionaire investor Paul Tudor Jones said in an interview on CNBC’s “Squawk Box” that bitcoin is a good hedge against inflation and that he likes bitcoin as a portfolio diversifier. He also mentioned that he has a small percentage of his assets in bitcoin. Jones has been vocal about his support for bitcoin in the past, and his bullish comments likely helped to boost market sentiment.
Furthermore, the overall sentiment in the cryptocurrency market has been positive, with many investors and traders feeling optimistic about the future of digital assets. This positive sentiment has led to an increase in demand for bitcoin and other cryptocurrencies, which has contributed to the recent price rally. As a result, the total market capitalization of all cryptocurrencies has also seen a significant rise, surpassing $1.7 trillion for the first time since May.
Looking ahead, it remains to be seen whether bitcoin will be able to sustain its recent gains and continue its upward trajectory. While the news from El Salvador and the positive market sentiment have been driving factors behind the recent price surge, there are still potential risks and uncertainties that could impact the cryptocurrency market. As always, investors and traders should approach the market with caution and conduct thorough research before making any investment decisions.
Overall, the recent surge in the price of bitcoin to over $46,000 for the first time in nearly a month is a significant development for the cryptocurrency market. With positive news from El Salvador and other bullish developments, the outlook for bitcoin and the broader cryptocurrency market appears to be optimistic. However, it is important for investors to stay informed and be aware of the potential risks that come with investing in such a volatile asset class.