Bitcoin’s price is back up to nearly $35,000, supported by the Biden plan, the distribution of $30 in BTC to every adult in El Salvador and its upcoming adoption by Paraguay.
The price of Bitcoin was giving traders, but also cryptocurrency investors, a few cold sweats in recent days. The BTC was indeed venturing below 30,000 dollars, which had not happened since January.
Moreover, in a cryptocurrency market characterized by high uncertainty, the price of altcoins displays a strong correlation with that of Bitcoin. Clearly, the decline of BTC brings the decline of other cryptos in its wake.
On Friday, June 25, Bitcoin’s 5% rise to nearly $35,000 thus triggers the rise of the rest of the cryptocurrencies, in varying proportions. Dogecoin, whose trend of the last few days could cause concern, thus rebounds by 18% to $0.27.
For Ethereum on the other hand, the rebound is less clear at only 2.17%. The Ether therefore remains below the threshold of 2,000 dollars. However, a massive amount of options on Ether expire today. The price is therefore to be followed with attention.
But it is the price of Bitcoin that should be scrutinized. It is the one that is currently setting the tempo on the whole – or almost the whole – crypto-asset market. In growth of 5%, the price benefits from favorable factors.
The Biden administration announced yesterday an agreement with the Senate to fund a massive infrastructure investment plan. This plan provides $953 billion for the US economy.
Cryptocurrencies, like other financial instruments, including stocks, are taking advantage of this economic signal. However, other levers also explain Bitcoin’s rise over the past 24 hours.
El Salvador, which has made BTC a legal tender, has announced the distribution of $30 in free Bitcoin to every adult in the country. This will therefore increase the buying pressure on the price of BTC and pull the price up.
Analyst Willy Woo estimates that the global user base of Bitcoins will increase by 2.5% thanks to its ownership by 4.5 million Salvadorans. For Zack Guzman, it would be 195 million dollars of bitcoins that will be distributed for free in El Salvador.
Finally, and this is another growth lever of BTC, a second South American country is preparing to imitate El Salvador. The information is not yet confirmed, but Paraguay is also reportedly planning a law making Bitcoin a legal currency. This prospect would immediately pull the price of the asset above $35,000.