|

Bitcoin price attempts recovery as Central African Republic adopts BTC as legal tender

  • The Central African Republic has adopted Bitcoin as legal tender, making it the second country in the world to accept BTC. 
  • Lawmakers at CAR unanimously approved a bill that legalized the use of cryptocurrencies in the country and made Bitcoin and the CFA Franc legal tender. 
  • Analysts believe Bitcoin price is in the final step before a massive rally, set target at $49,000. 

Bitcoin price could recover from its recent pullback with several bullish updates across the BTC ecosystem. Many analysts are bullish on Bitcoin price and predict a run to $49,000. 

Bitcoin price could make a comeback following bullish announcements

Bitcoin price is on track to recover recent losses with a bullish turn of events. The Central African Republic, a landlocked African nation, announced its acceptance of Bitcoin as legal tender alongside the CFA Franc. 

This decision is a watershed moment for BTC holders as CAR is the second nation in the world to adopt Bitcoin alongside its fiat currency. Lawmakers at CAR made the unanimous decision to welcome BTC and identified it as a legal method to make payments across the country. 

Back in September, El Salvador’s announcement of recognizing BTC as legal tender in its country fueled a bullish sentiment among retail and institutional investors worldwide. Proponents expect CAR’s announcement to have a similar impact on Bitcoin price. 

Currently, two other catalysts are driving the Bitcoin price. Fidelity Investments, an American brokerage firm, revealed plans to roll out Bitcoin investing for 401(k). MicroStrategy, famous for its aggressive Bitcoin accumulation, announced plans to offer employees access to Bitcoin retirement plans through Fidelity’s service. 

Another exciting investment product, a hybrid ETP that includes both Bitcoin and Gold, was launched by 21Shares; this could offer investors a hedge against inflation. 21Shares and ByteTree revealed BOLD ETP comprises 18.5% Bitcoin and 81.5% Gold. 

Proponents believe the introduction of several Bitcoin-based and backed investment products in the market and the asset’s acceptance as legal tender are significant events that could contribute to a price hike in BTC. 

@TATraderAlan_, a crypto analyst and trader, believes Bitcoin price is in the last step before breaking out in a massive uptrend. The analyst has set a bullish target of $49,000 for the Bitcoin price. At time of writing, BTC/USD is trading at the $39,000 area.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.