Bitcoin holds above US$42,000 as bullish sentiment continues ahead of key developments
Bitcoin opened trading at the US$42,000 level but faced a surge in take-profit and sell orders, resulting in widespread market liquidations following its recent peak at US$44,700. The market witnessed a tug-of-war between bulls and bears, with sell-offs on Tuesday and Wednesday, causing BTC to dip to the US$40,000 mark ahead of the US interest rate decision.
After the Federal Reserve maintained steady rates and hinted at possible rate cuts in the coming year, Bitcoin quickly rebounded to the US$43,000 level on Thursday.
The US Financial Accounting Standards Board (FASB) further contributed to the market boost by introducing new accounting regulations mandating companies like MicroStrategy, Tesla, and Block to assess their cryptocurrency holdings at fair value. Effective in 2025, these rules allow businesses to monitor real-time fluctuations in asset values.
Currently, BTC is consolidating at the US$42,000 level, showing a 36% decline from its peak but boasting a remarkable 159% year-to-date gain. Key resistance levels are identified at US$43,200 and US$43,500, while support stands at US$41,200, indicating an overall bullish sentiment.
In tandem with BTC, Ethereum reflects similar profit and loss trends. Despite being down 52% from its all-time high, Ethereum has gained 12% month-to-date and 91% year-to-date.
In a noteworthy development, El Salvador granted regulatory approval for the world's first Bitcoin bonds, underscoring the evolving landscape of digital finance.
This move reaffirms El Salvador's commitment to integrating Bitcoin into its economic infrastructure following its decision to adopt Bitcoin as legal tender in September 2021. The approval of Bitcoin bonds signals a growing acceptance of cryptocurrencies
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