Cryptocurrency trading has experienced a rebound this year, as the world’s number one cryptocurrency surpassed last year’s declines, as it came under pressure to tighten monetary policy by global central banks. During 2023, bitcoin rose by about 160 percent to jump the cryptocurrency’s market capitalization to about 530 billion dollars. Despite the continued tightening of monetary policy during most of the year, the shift in the tone of monetary policymakers in recent months, and the fact that most major central banks fixed the interest rate during the last months of the year, has caused support for riskier financial assets that benefited from the decline in the US dollar.
At the same time, reports about the approval by regulators in the USA of applications of large corporations and financial institutions for the license of ETFs caused the spot price of bitcoin as one of the most important additional factors that supported the rise of bitcoin.
Despite its gains during the current year, as the Bitcoin currency rose to approach the levels of 45 thousand dollars, it is still far from its highest level, which reached it during 2021 when it reached the levels of 69 thousand dollars. While experts expect that next year bitcoin will witness an increasing recovery in light of the halving event, which occurs once every four years.
In other news, the legislature of El Salvador recently passed a law that allows foreign citizens to obtain citizenship by donating bitcoin to the country. This law, aimed at “influential foreigners” who want to contribute to the economic, social and cultural growth of El Salvador through bitcoin donations, is expected to be implemented soon. El Salvador was the first country globally to recognize Bitcoin as an official currency, a move initiated by President Nayib Bukele, during 2021.
At the level of trading on Sunday, bitcoin fell by 0.23% to trade against 43.634 dollars, and ethereum also fell by 0.18% to reach 2291 dollars, at 09: 11 AM GMT.
