Bitcoin stopped around $ 58,000 on Monday, taking a breather from its weekend high as investors braced for inflation concerns and US stimulus spending to push them higher.
The rise may have been dampened by a Reuters report that India continues to impose a ban on digital assets.
The rise in Bitcoin’s value came after the notable endorsement this year by the likes of (Elon Musk) from Tesla, (Jack Dorsey) from Twitter, and investment giants Goldman Sachs and BlackRock.
Bitcoin more than doubled in 2021, after quadrupling last year.
Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said: Investment from investment institutions and companies is increasing, and this is what I call the development of financial capitalism for the Bitcoin currency. An asset that investors can no longer ignore.
Rising risk appetite in financial markets helped boost Bitcoin prices over the weekend after President (Joe Biden) signed a $ 1.9 trillion fiscal stimulus package into law and ordered vaccinations to speed up.
This momentum carried over to less weak markets over the weekend, with technical factors amplifying the move higher, according to Justin d’Anethan, sales manager at Diginex in Hong Kong.
De Anthan said: The cryptocurrency market is heavy in derivatives, andA small move up resulted in several eliminations over Saturdays and Sundays, so it became a not very small move.
Seth Melamed, chief operating officer at the Tokyo-based cryptocurrency exchange Liquid, said: Legislation of the kind India is proposing will not be an impediment to further gains for Bitcoin.
Because it is decentralized, he added, government bans or acceptance are somewhat irrelevant, and capital finds a way around that.