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Bitcoin crosses the $39,000 milestone, rising 12% since July 16

By Yashasvini on Jul 26, 2021 | 03:36 AM IST

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Bitcoin rallied on Monday to record its largest single daily gain in six weeks after a massive sell-off led to the cryptocurrency falling below $30,000. It rose 12% at $39,544 for the first time since July 16.

Bitcoin’s prices have continued to rally since July 21, with Monday’s rally adding more than $100 billion to the cryptocurrency market in just 24 hours. Bitcoin was trading at around $38,974.19 at 1:18 PM ET on Monday, rising by 13.59% in the last 24 hours, according to CoinDesk data. Other cryptocurrencies such as ether also recorded an increase in value to 8.7%, reaching $2,345.

Last week, the cryptocurrency recorded a massive plunge in value triggered by a sudden global sell-off. Analysts attribute the rebound in cryptocurrency prices to the strong earnings reports by big tech and finance players from the U.S. markets. Fears surrounding China’s crackdown on bitcoin mining have also cooled off, quelling any anxiety surrounding Beijing’s regulatory moves.

Analysts have also attributed the surge to a short squeeze. If the bitcoin’s price goes higher, investors who short bitcoin will be able to cut losses and exit their short positions, pushing the currency even higher.

Last week Jack Dorsey, Elon Musk, and Cathie Wood talked about the future of bitcoin and cryptocurrencies in their organizations, at the Bitcoin Conference. 

Musk also added that Tesla would start accepting bitcoin for vehicle purchases again after witnessing a switch to renewable energy concerning bitcoin mining. Earlier this year, Tesla suspended vehicle purchases using bitcoin, after Musk tweeted his concerns surrounding the “rapidly increasing use of fossil fuels for bitcoin mining.

Apart from the bullish talk by Dorsey, Musk, and Wood, there are reports of Amazon looking to add a digital currency and blockchain expert to its payments team. The new addition suggests that the e-commerce giant may be looking at bitcoin and other cryptocurrencies. CNBC reported that an Amazon spokesperson said the company is “inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon.”

(With inputs from Coindesk

Picture Credits: Reuters


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