Bitcoin Approaches US$ 58,000 In New Appreciation

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Bitcoin: This Monday (11), Bitcoin faced an appreciation of 5.7% and surpassed the level of US$ 57,700, registering its highest price since May 10 this year — the eve of its last big drop. The main cryptocurrency is on its way to canceling the effects caused by the various restrictions imposed by the Chinese government and detaching itself, at least momentarily, from the movement of the S&P500 index — which represents the largest American companies.

The explosive advance in the price of Bitcoin, which has been perpetuated since last September 29 and has accumulated a 40% high, reflects its positivity in the mood of investors. As some analyses, such as that of broker Rekt Capital, suggest, the record valuation beyond $100,000 became not only possible, but probable.

Apparently, one of the reasons responsible for the recent advance of Bitcoin is one of its main fundamentals: the maximum limit of 21 million units in circulation. By delimiting its total supply, the asset becomes deflationary in nature, while its price appreciates amid the increase in market demand. Currently, about 18.8 million bitcoins have been produced — or 90% of the total amount available.

According to Bloomberg, this feature reached the “general public”, which would now be seeing the cryptocurrency as an alternative to the dollar itself, given the crisis in the US spending ceiling.

Bloomberg Intelligence commodity strategist Mike McGlone comments on the scenario: “Reacting to rising US debt and tensions over a possible default [or “default”], Bitcoin may be entering a single phase for a surge in price in the fourth quarter, as markets gain confidence in the encoding that defines cryptocurrency supply,” he explains.

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