Bitcoin has been a major topic of discussion over the past few months, it has seen big rises and hard crashes but in the end it has provided endless opportunities for investors to make profits, as always, traders are always looking for more information about the price of the currency, as it can reveal Her weekly performance about a lot.
The last few days haven't been anything special for the price Bitcoin It is still swinging between the $35,000 and $38,500 levels, however, the highlight of the past period has been the currency related news that is paving the way for a potentially growing bullish momentum in the coming days.
Financial flows to digital exchanges
Yesterday, Wednesday, February 3, cryptocurrency exchanges saw a spike in stablecoin deposits, which instilled hopes that traders will use the crypto-tokens pegged to the dollar to buy bitcoin.
Data showed that stablecoin reserves on exchanges hit a record high of 5.47 billion after adding $600 million.
The recent gains came as part of a broader recovery movement that saw bitcoin rebound from its January low of $28,732, before that, the digital currency 30% collapsed nearly from its record highs near $42,000.
Analysts now see the current rally as a bullish continuation setup, as the asset will resume its upward trend after a period of consolidation.
"Elon Musk" Declares that he is officially pro-Bitcoin
This is great news for the leading digital currency, as Elon Musk is not only the CEO of Tesla and SpaceX and the richest man in the world but also the most famous billionaire, thus his official pro-Bitcoin announcement is a major step for the currency and the crypto industry as a whole.
Over the past months, Musk has been tweeting in a positive way about cryptocurrencies, but this time he has publicly stated that he is a supporter of the leading cryptocurrency, and even put Bitcoin in his Twitter bio.
Visa reveals investment plans
Another major news for digital currencies is that Visa may add support for cryptocurrency trading, and according to its recent CEO statement, Alfred Kelly said Visa has a global presence and is a trusted brand, and with the increasing use of cryptocurrencies in payments, it is only natural that Visa is seizing this Opportunity, and of course if this happens it is likely that Bitcoin will be one of the first currencies to be supported.
So far no one knows about the future of regulation towards the leading cryptocurrency under the new US administration led by Baden, but it seems that the majority of investors and institutions working in crypto are optimistic, given the strong institutional demand that regulators will likely have to pass laws or they will risk greater disruption. For conventional finance, companies like Square, Paul Tudor Jones, Skybridge and others are present in this growing market.
Analysts are still predicting that the price of Bitcoin could reach $600,000 and that the cryptocurrency will eventually steal a portion of the market value of gold to reach higher valuations, with many investors currently viewing both as inflation hedge assets.