The cryptocurrency bitcoin has become worth more than $80,000 for the first time in more than three months. There seems to be optimism that there has been a breakthrough in negotiations in the United States on a provision in a bill for crypto legislation.
Hans Renier
Journalist at HLN
The world’s largest cryptocurrency increased in value by about 2 percent on Monday morning, pushing the value of the coin above $80,000. That is the highest level since January 31. Other cryptos also rose in value.
Traders were processing mixed messages about the war in the Middle East. President Donald Trump said the US will escort ships not involved in the Iran war through the Strait of Hormuz. But a senior Iranian official warned that Tehran would view any US interference in the strait as a violation of the ceasefire.
This is the highest level since January 31. Other cryptos also rose
Bitcoin reached a record high of over $126,000 in October. Then, amid tensions in the financial markets, it fell to around $60,000 in February. Hope from peace talks in the war with Iran has led to a recovery in the crypto market in recent weeks.
But crypto companies have long been operating in a regulatory gray area in the US, which industry executives say is hampering their business operations. New legislation has been proposed in Washington to solve this and promote the use of crypto coins.
Crypto legislation
However, the bill stalled earlier this year as banks opposed a provision that would allow crypto companies to offer certain interest rate products. A breakthrough in negotiations on that provision could pave the way for the proposed crypto legislation to be discussed in the US Senate.
US President Donald Trump promised in the run-up to his second term to make the US the “crypto capital” of the world. He also talked about plans to build a strategic stockpile of bitcoin, just as countries build strategic stocks of raw materials such as oil and gas.
