Bitcoin hits highest level since 12th May, Ethereum struggles around $4,000

  • Cryptocurrency News
Bitcoin hits highest level since 12th May, Ethereum struggles around $4,000

By Samuel Indyk – Major cryptocurrencies were mixed on Monday with Bitcoin breaking to cycle highs and Ethereum remaining subdued under $4,000.

Late on Sunday, Bitcoin broke above $51,100, which was the 61.8% Fibonacci level from the April high to July low, to move above $52,000 to its highest level since 12th May.

Since then, Bitcoin has pared some of the gains to trade back below $51,500.

El Salvador soon to adopt Bitcoin

All eyes in the world of cryptocurrencies are on El Salvador, which on Tuesday will become the first country to accept Bitcoin as legal tender.

The policy, introduced by President Nayib Bukele, will allow the population to shop, buy property and land, and pay taxes in Bitcoin.

The International Monetary Fund (IMF) previously said adopting Bitcoin as legal tender could put the financial system at risk. The two parties are currently in discussions over a new loan.

The country will have its own digital Bitcoin wallet, called Chivo, with every user receiving $30 worth of Bitcoin for free. There will also be Chivo ATMs that will allow users to convert their fiat currency into Bitcoin and vice-versa.

Other cryptocurrencies

Other major cryptocurrencies are mixed with Ethereum failing to reclaim $4,000 after breaking back above the level on Friday for the first time since May. The second largest cryptocurrency by market cap has been on a strong run in recent weeks, rising 35% in August and 14% in September so far.

The third largest cryptocurrency, Cardano , has also taken a breather after a recent strong run of gains took the coin above $3.00 for the first time.

However, it hasn’t been slow going for all the cryptocurrencies involved in Decentralised Finance (DeFi) applications. Solana , which is now the seventh largest cryptocurrency, has resumed its upward momentum after a 5% decline on Saturday.

The Ethereum-rival has risen from around $36 at the beginning of August to over $150.

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