Bitcoin resumes its gains near the highest level in 8 months

Bitcoin prices rose during Monday’s trading, to resume gains that were paused yesterday, about to touch the highest level in eight months again, as part of attempts to cross the psychological barrier at $25,000.

This rise comes amid positive sentiments dominating the markets of high-risk assets, in light of the decline in US dollar levels in the foreign exchange market, pending more evidence about the possibilities of the Federal Reserve continuing to tighten monetary policy and raising interest rates.

Bitcoin price today

On the “Bitstamp” stock exchange, the digital currency “Bitcoin” increased by $707, equivalent to 2.9%, to $24,978, and the opening price of today’s trading was at $24,271, and it recorded the lowest level at $23,862.

When prices settled on Sunday on the Bitstamp exchange, bitcoin prices lost about 1.5%, their first loss in the last three days, due to corrections and profit-taking from an eight-month high of $25,270.

The world’s largest cryptocurrency, “bitcoin”, rose by 11.5%, in the first weekly gain in the last three weeks, taking advantage of the improvement in sentiment, while surpassing pivotal technical levels.

On Monday, the cryptocurrency market capitalization increased by nearly $18 billion to a total of $1.133 trillion, thanks to the current rally in the prices of Bitcoin, Ethereum, and other major currencies.

U.S. dollar

The dollar index fell on Monday by 0.2%, extending its losses for the second consecutive session, moving away from the highest level in six weeks at 104.66 points, reflecting the decline in the levels of the US currency against a basket of world currencies.

The decline in the levels of the US dollar leads to an improvement in the sentiment of investors in the markets of high-risk assets, which is currently reflected in the rise in most stock markets in Asia and Europe.

In contrast to corrections and profit-taking, US currency levels are declining, awaiting many new evidence this week, about the future of the expected increases in interest rates by the Federal Reserve during the coming period.

Tomorrow, Tuesday, important data will be issued on the main constituent sectors of the US economy during February, and on Wednesday the minutes of the last meeting of the Federal Reserve Bank, and on Thursday the weekly jobless claims, and on Friday important data on personal consumption expenditures in the United States.

Regulatory restrictions

The recent period has witnessed increased scrutiny and the imposition of new regulatory restrictions by the US Securities and Exchange Commission on the crypto sector in the United States, in addition to imposing a flood of investigations into digital companies.

In light of these developments, the affected digital asset companies are looking to search for financial centers outside the United States, which adds more uncertainty to the prospects of the crypto industry in one of the main countries of that nascent industry.

Singapore, Hong Kong, Europe and Dubai are more attractive among cryptocurrency companies considering exiting the US market, as these countries enjoy extensive regulatory processes in addition to tax benefits, with the governments of those countries providing great support to the crypto sector.