Bitcoin resumes its gains of near 3-week highs
The price of the digital currency “Bitcoin” rose during Tuesday’s trading to resume its gains, which were temporarily stopped yesterday as part of corrections from the highest level in three weeks, to trade again above $28,000. Taking advantage of the current slowdown in US dollar levels where risk sentiment is currently better in global markets, after reaching an initial agreement to solve the debt ceiling crisis in the world economy avoids catastrophic financial risks if the US government actually defaults on its obligations.
On the “Bitstamp” exchange, the digital currency “Bitcoin” rose by about $ 306, equivalent to more than 1.1%, to $ 28,054, from the price of today’s trading opened at $27,748, and recorded the lowest level at $27,603. When settling prices Monday on the Bitstamp exchange, bitcoin prices lost 1.1%, marking their first loss in a while. The last five days, after earlier recording the highest level in three weeks at $ 28,452, the cryptocurrency market capitalization rose on Tuesday by $13 billion to a total of $1.167 trillion, amid the current recovery in the prices of Bitcoin, Ethereum, and other major currencies.
On Tuesday, the US currency fell by 0.4% against a basket of global currencies, after recording earlier in the day that transactions reached the highest level in two months, with clear activity in selling operations to book profits. In addition to the improvement in the appetite for risk in the markets, there is a demand for buying high-risk assets, with approval approaching the US Congress agreed in principle to raise the US debt ceiling.
US President Joe Biden and House Speaker Kevin McCarthy reached a tentative agreement over the weekend regarding the US debt ceiling, which might enable the United States to avoid a catastrophic financial default.
The cryptocurrency market has partially recovered this year from the major turmoil of last year that led to violent crises such as the FTX crash. Despite this improvement, cryptocurrencies are still far from record highs, including Bitcoin’s peak of nearly $69,000 in 2021.