Cryptocurrency bitcoin broke above the $40,000 mark on Wednesday, July 28, and is now on its journey to break from its month-long range, as the traders drew confidence from recent positive remarks by influential investors and short-sellers bailed out. On Monday, July 26, bitcoin registered its biggest single-day jump in six weeks as it rose as far as 12.5 per cent to hit $39,850 – its highest level since mid-June. This has been bitcoin’s best week in almost three months, which likely restricted short sellers to make moves.
At a market cap of $741.69 billion, bitcoin is the world’s largest, oldest, and most popular cryptocurrency. On Monday, rival cryptocurrency ether – the second-largest cryptocurrency by market value, also hit a three-week peak of $2,344.
Last week, cryptocurrency enthusiast and billionaire Elon Musk – the owner of electric vehicle company Tesla Inc said that the carmarker would likely resume the acceptance of bitcoin once it conducts the due diligence on its energy use, according to news agency Reuters. Tesla had suspended digital payments in May 2021, which contributed to a sharp crypto selloff.
”The recent jump in bitcoin price was expected as there has been a huge demand from institutional investors during the price drop. Bitcoin, the flag bearer of the crypto industry around the globe has seen the biggest one-day hike in six weeks, a recent announcement from the e-commerce giant, Amazon, supporting cryptocurrencies may have also contributed to the jump in bitcoin price.
We are witnessing a growing acceptance of digital assets with some of the biggest names in the business backing cryptocurrencies and we expect similar enthusiasm from Indian regulators around digital assets,” said Shivam Thakral, CEO of India-based global cryptocurrency exchange and wallet -BuyUcoin.
On Wednesday, bitcoin was last trading higher 3.57 per cent, up 1,365.5 points at $39,595.4 against the US dollar. While, ether, at a market cap of $267.15 billion, was last trading higher 0.51 per cent, up 11.57 points at $2,291.76 against the US dollar.