Investors are accumulating new assets, while countries in Africa, Central America, and South America are ramping up their use of the technology.
In the wake of a rise in U.S. stock prices, Bitcoin (BTC) surged back over $40,000 on Thursday, as new evidence surfaced of investor accumulation and growing acceptance by countries from Africa to Central and South America.
At the time of this writing, the most valuable cryptocurrency on the market had gained 3.2% in the previous 24 hours and was trading at $40,206.
Cryptocurrency prices are holding up despite many encouraging developments, according to Quantum Economics market analyst Jason Deane.
This month, the Central African Republic became the second country in the world to legalise the use of bitcoins.
The Central Bank of Cuba (BCC) has declared that it plans to award virtual asset service companies with licences. The licence is open to both Cuban and non-Cuban persons and organisations.
A crypto-regulation measure was enacted by the Panamanian Legislative Assembly recently. Latin America’s creativity and technological capital, Congressman Gabriel Silva said, will benefit from this.
On the same day, the country of Brazil also enacted legislation governing cryptocurrency. Business Today said that the law intends to create a regulatory framework for the country’s cryptocurrency business.
As whale holdings hit their greatest level since September of last year, Marcus Sotiriou, an analyst at the UK-based digital-asset broker GlobalBlock, wrote: “Bitcoin continues to seem bullish from an on-chain standpoint.” A big surge in price occurred in November as a result of whale (large) ownership increasing rapidly in September.
Retail is purchasing bitcoins according to IntoTheBlock, an analytical company of blockchain technology. A whopping 2.08 million bitcoins are now in the possession of addresses with fewer than 10 bitcoins.
According to IntoTheBlock, there has been a 2 percent increase in the balance of addresses holding 0.001-0.01 BTC and 0.01-0.1 BTC during the last 30 days.
RSI divergence on the daily time frame has once again verified positive divergence on Bitcoin’s technical chart, according to Sotitiou. In addition, he claims that retail bitcoin investors are now in a period of accumulation.
The price of Ether (ETH) has risen by 4% in the last 24 hours to $2,968. Stocks in the United States rises on Thursday. Nasdaq and S&P 500 were both up 2.6% and 2.3% respectively.