On Monday, the price of bitcoin rallied 4.8%, reviving its positive momentum, although it may be tough to break $42,000.
With its latest price gain, Bitcoin's market valuation reached $817 billion, surpassing both Visa and Bank of America.
El Salvador's president, Nayib Bukele, said that anyone who doubt the country's success can express their regrets to El Salvador, which is now sitting on $3.6 million in earnings.
The price of bitcoin has increased at an astounding rate of over 150% in the last year, reaching $42,000 in the last 24 hours alone. As seen in his latest tweet, the president of El Salvador is one of many who have placed their faith in Bitcoin, which has grown to become the tenth largest asset in the world.
After gaining over 5% in the past day, Bitcoin's current valuation is $817 billion. Thanks to its recent surge in value, Bitcoin is now the ninth most valuable asset on the planet. The cryptocurrency achieved this feat by outperforming several notable entities, such as Tesla, Visa, major banks including JPMorgan Chase and Bank of America, and the world's most valuable firm, Berkshire Hathaway.
The cryptocurrency's recent gains have brought it within $5 billion of Meta's market value, which stands at $822 billion as of this writing—Facebook's parent corporation. The two main reasons why this is likely to occur in 2024—the halving event and the acceptance of spot BTC ETF applications—are that Bitcoin will see tremendous growth that year.
Bitcoin investors, who had been hoping for a turnaround for over two years, also felt a surge of optimism during this rally. In November 2021, Bitcoin's price hit an all-time high of $68,789, inspiring confidence in BTC holders and leading to a subsequent surge above $100,000. That goal has still eluded Bitcoin so far, but the current upswing has restored market optimism.
The latest tweet from El Salvador's president, Nayib Bukele, is the strongest indicator of this in the market's mindset. Bukele rejoiced on X, the former Twitter, on the country's successful Bitcoin holdings. El Salvador is presently experiencing $3.62 million in unrealized profits from their inventory.
At the rally's climax, Bukele demanded an apology from those who had criticized the government's Bitcoin plan. "Issue retractions, offer apologies, or, at the very least, acknowledge that El Salvador is now yielding a profit," he said, meaning that skeptics should do the right thing. Nevertheless, he remained steadfast in his belief in Bitcoin's potential and the strategy to establish a nation based on the cryptocurrency, saying,
Naturally, we do not intend to sell; that has never been our goal. Although we anticipate further price fluctuations in the future, this will have no impact on our overall strategy.
The price of bitcoin breaks records yet again
A valuation of $817 billion for Bitcoin is not unprecedented; the digital currency was worth $1.2 trillion in November 2021. But now that it's back in the top ten assets, $42,000 is a crucial price point for Bitcoin.
If investors want to set off a rally that would take Bitcoin beyond $45,000, turning this level into a support floor is essential. With a current price of $41,826 and indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) showing positive signals, the cryptocurrency seems poised to break $42,000 once again.
A 22-month peak in Bitcoin pricing, however, may prompt many BTC investors to book profits. This may cause the price of the cryptocurrency to fall, and it may happen even if it doesn't go beyond $42,000.
Should this happen, a drop below $40,000 is within the realm of possibility; if Bitcoin were to lose this support, the bullish thesis would be rendered useless, and the price of Bitcoin would plummet to $38,000 and below.