The price of Bitcoin at USD 58,000 stands as a zone of strong demand for the cryptocurrency. The high leverage that traders use in the market prevents the sustainable growth of its value.
For the first time in nearly two weeks, the value of the pioneering cryptocurrency fell below USD 60,000. Bitcoin holders had moments of joy when its price exceeded the all-time high of USD 67,200 it had hit in April. Traders anticipated a correction that would lead to support levels below USD 60,000.
After the price of Bitcoin exceeded its all-time high, several traders said that it should maintain support at USD 62,000. They explained that that would allow it not to fall back to USD 58,000. However, it seems that there were more sell orders than buy orders, with which the cryptocurrency tested the demand at the current price.
After touching USD 58,000, the value of Bitcoin took a rebound that positioned the cryptocurrency at around USD 60,800. That shows that the demand for the cryptocurrency is high within that price zone.
Some analysts attribute this drop to the considerable leverage that traders have used in the market. Charles Edwards, from Capriole Investments, believes that price growth would not be sustainable with such high leverage levels. Nonetheless, he thinks the rest of the metrics remain healthy.
Although the value of Bitcoin has fallen, the cryptocurrency remains in eighth place in the group of billionaire assets. Its market capitalization even exceeds that of companies like Tesla and Facebook. Its price would have to fall below USD 54,000 to lose that position.
The value of the cryptocurrency exceeded its all-time high following news about the approval of the first Bitcoin Futures NTFs in the United States. It was necessary to wait around eight years for public funds of that type in the country. The potential approval of a spot ETF could lead the price of Bitcoin to resume its bullish momentum.
A Bitcoin Fund Receives Approval to List in Dubai
Bitcoin Fund, an investment vehicle closed in Canada, received approval from the Dubai Financial Services Authority (DFSA). According to a report by Trade Arabia, that fund can now go public on the Nasdaq of that city in the United Arab Emirates.
That is the first cryptocurrency-based product from Dubai to list on a regulated platform. In that way, the UAE becomes closer to the use and trading of these assets.
There Could Be a New Law to Regulate Cryptocurrencies in India
The Indian Ministry of Finance could soon enact a new law to regulate the cryptocurrency sector. Officials of that agency have said that such regulation could enter into force at the annual budget time.
Finance Minister Nirmala Sitharaman would be in charge of provisionally presenting that annual budget on February 1st, 2022. She had been concerned about the anti-Bitcoin protests in El Salvador and even raised the possible creation of a CBDC.
The Indian authorities did not say that a ban on decentralized cryptocurrencies would be imminent. The report also mentioned that the government could treat those digital assets in a similar way to commodities.
By Alexander Salazar
