Bitcoin extended its gains over the past few days, following a series of positive news regarding cryptocurrencies
Bitcoin extended its gains during the last few days, following a series of positive news regarding digital currencies, bringing the price of the leading digital currency to more than $39,000, and its total market value surpassing the $719 billion level.
Over the past week saw bitcoin A major positive corrective operation, as its price made gains of more than 37%, taking the coin from $29,800 to almost $40,000. The impressive bullish trend represents one of the best positive corrections the coin has seen since it started its downward curve since mid-April.
Beginning this week, the leading cryptocurrency had a great week of trading, since the market opened on Monday (July 26) its price has recovered from the $35,000 level to over $40,000, adding over 15% to its value.
Those impressive gains are largely due to growing speculation that e-commerce giant Amazon is considering starting to accept payments in bitcoin by the end of this year, and in 2022 the internet giant may have its own digital currency.
After that news, investors began to buy digital currencies, and they also began to wonder how much money would flow to the crypto market if Amazon, which has sales of tens of billions, accepted the digital currency as a method of payment, and although it was rumors, it increased the demand of investors for currencies Cryptography and their interest in it.
Factors that contributed to the rise of Bitcoin
Renewed cases of corona virus
The world’s first digital currency rose last weekend, driven by several factors that contributed to those gains, which included a renewed rise in the number of new cases of the new mutant “delta” globally, which would make many countries start to think again to put Gradually more restrictions to limit the further spread of virus mutants, “Anthony Fauci” said that the Biden administration is considering adding a new mask mandate even among vaccinators, there are other countries such as Germany and France that are considering imposing these restrictions soon.
In theory, the resurgence of the virus is supposed to be bad news for cryptocurrency prices, however, there is a positive side to the resurgence of the virus and that it will force global central banks to wait and see before they start taking any measures towards tightening their monetary policy .
In fact, the US bond market is pricing in prolonged easing as issues rise, 10-year yields tumbled to 1.245%, and 30-year yields slumped to 1.88%.
Improved risk appetite for Bitcoin
Secondly, the price of bitcoin rose as investors' risk appetite improved towards the cryptocurrency industry, this is evidenced by the total volume of cryptocurrency trading on the leading exchanges, the data shows that the total volume has increased in the past few days.
The 24-hour trading volume on Binance has increased by more than 63% to over $25.7 billion per day, while volume on Coinbase has increased by more than 116% to over $3.5 billion, and trading volumes on almost all crypto exchanges have similarly increased.
Third, the price of the initial cryptocurrency jumped following the positive statements made by Tesla CEO Elon Musk regarding Bitcoin. Moreover, there are rumors that Amazon will start accepting the cryptocurrency as a payment method by the end of the year.