- Bitcoin price revived its bullish momentum on Monday with a 4.8% rally, but breaching $42,000 could be difficult.
- The recent increase in price pushed Bitcoin’s market cap to $817 billion, making it a bigger entity than Visa and Bank of America.
- Nayib Bukele, president of El Salvador, stated that naysayers should apologize to the country, which is now holding profits worth $3.6 million.
Bitcoin price noted stellar growth this past year, rising by more than 150% and hitting $42,000 in the past 24 hours. This growth has made Bitcoin the tenth biggest asset in the entire world, imbuing confidence in BTC enthusiasts, including the president of El Salvador, which is evidenced by his recent tweet.
Bitcoin targets Meta next
Bitcoin is presently valued at $817 billion after rising by nearly 5% in the last 24 hours. This increase in market capitalization has made BTC the tenth biggest asset in the world. The cryptocurrency managed to do so by surpassing the likes of Tesla, Visa, banks including JPMorgan Chase and Bank of America, and the company with the highest share price in the world - Berkshire Hathaway.
Bitcoin among the top 10 biggest assets
The growth noted by the cryptocurrency has now placed it less than $5 billion away from surpassing the market capitalization of Facebook’s parent company, Meta, which stands at $822 billion at the time of writing. This is expected to happen sooner rather than later, given that Bitcoin is bound to witness exceptional growth in 2024 owing to two simple reasons: the approval of spot BTC ETF applications and the halving event.
This rally also reignited the confidence of Bitcoin investors, who have been holding out hope for nearly two years now. Bitcoin price reached its all-time high of $68,789 back in November 2021, which instilled confidence in BTC holders of the cryptocurrency, eventually reaching $100,000. Bitcoin has not even remotely close to achieving that yet, but the recent rally once again imbued the same confidence in the market.
This is visible in the sentiment of the market, best noted in the recent tweet of Nayib Bukele, the president of El Salvador. Bukele took to X, formerly Twitter, to celebrate the fact that the country’s BTC holdings are now profitable. El Salvador is currently witnessing unrealized gains worth $3.62 million on the supply they hold.
El Salvador Bitcoin profits
Highlighting the rally, Bukele lashed out at the critics of the country’s Bitcoin strategy, demanding apologies from them. He stated that the responsible thing for naysayers to do would be to “issue retractions, offer apologies, or, at the very least, acknowledge that El Salvador is now yielding a profit.” However, he maintained his position on the future of Bitcoin and the plan of building its country on the back of the cryptocurrency, stating,
“Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.
Bitcoin price makes history again
Bitcoin being valued at $817 billion is not a record-breaking feat, as back in November 2021, the cryptocurrency was valued at $1.2 trillion. But the reentry into the top 10 asset list has made $42,000 a critical price level for BTC.
Flipping this level into a support floor is crucial in igniting a rally that the investors expect would be the trigger that pushed BTC to $45,000. Trading at $41,826, the cryptocurrency is on the verge of breaching $42,000 again, and the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both exhibiting bullish cues presently.
BTC/USD 1-day chart
But Bitcoin price reaching a 22-month high might also act as a trigger for profit booking for many BTC investors. This could likely result in a price crash that would occur even if the cryptocurrency fails to breach $42,000.
In such an event, a drawdown to $40,000 is possible, and losing this support would invalidate the bullish theory, sending Bitcoin price to $38,000 and lower.
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