Bitcoin Trades at $61K as Global Crypto Developments Unfold

TLDR

• Ripple launches cross-border payment service in Brazil with Mercado Bitcoin
• IMF urges El Salvador to tighten Bitcoin regulations
• JPMorgan sees geopolitical tensions and US elections driving Bitcoin demand
• Bitcoin trading around $61,180, consolidating near $61,250 pivot point
• Cryptocurrency market watching for potential breakout signals

Bitcoin, the world’s leading cryptocurrency, continues to trade around the $61,000 mark as various global events unfold in the crypto space.

As of October 4, 2024, Bitcoin’s price stands at $61,180, showing a modest 0.70% increase over the past 24 hours.

The digital asset is consolidating near a crucial pivot point of $61,250, with traders closely monitoring potential breakout signals.

In recent developments, Ripple, a major player in the cryptocurrency industry, has expanded its presence in Brazil. The company launched its Ripple Payments service in partnership with Mercado Bitcoin, a leading Brazilian cryptocurrency exchange.

This new service aims to simplify cross-border transactions, initially focusing on enhancing treasury operations between Mercado Bitcoin’s offices in Brazil and Portugal.

Ripple Boosts Cross-Border Transactions in Brazil With New Payment Solution https://t.co/kmfln2JfJB

— Bitcoin.com News (@BTCTN) October 3, 2024

The platform offers access to over 80 payout markets worldwide and provides 24/7 on-demand liquidity.

Silvio Pegado, Managing Director of Ripple LATAM, expressed optimism about the collaboration, stating that it will strengthen international trade and liquidity.

With Brazil’s favorable crypto regulations, Ripple has already processed over $50 billion globally and aims to drive further adoption in the region.

Meanwhile, the International Monetary Fund (IMF) has once again called for El Salvador to tighten its Bitcoin laws.

During an October 3 press conference, IMF spokesperson Julie Kozack emphasized concerns over Bitcoin’s potential impact on fiscal stability and transparency in the Central American nation.

The IMF recommended limiting Bitcoin’s use in the public sector and restricting its legal framework.

These statements follow similar recommendations made by the IMF in August.

Since El Salvador became the first country to adopt Bitcoin as legal tender in 2021, the IMF has closely monitored its economic strategy.

IMF says bitcoin remains key element in El Salvador program talks https://t.co/HU6bdkNRFT pic.twitter.com/CNIJ7Xf0GQ

— Reuters (@Reuters) October 3, 2024

Despite these concerns, El Salvador’s President Nayib Bukele remains confident in the country’s Bitcoin plan.

In a separate development, JPMorgan, a major global financial institution, suggests that rising geopolitical tensions and the upcoming U.S. elections are enhancing Bitcoin’s appeal as part of a “debasement trade.”

Investors are increasingly turning to assets like Bitcoin and gold as hedges against economic uncertainty. The bank believes that demand for Bitcoin could potentially increase if Donald Trump is elected president.

Key drivers of this “debasement trade” include inflation concerns, geopolitical instability, and large public deficits.

🚨 JUST IN: JPMorgan highlights that rising geopolitical risks could lead investors to favor gold and #Bitcoin as safe-haven assets.

The flight to quality is already happening. pic.twitter.com/tzFp9H6qHC

— Cointelegraph (@Cointelegraph) October 3, 2024

Institutional interest in Bitcoin futures has surged, while retail investors also showed renewed interest in Bitcoin ETFs in September. As these factors align, Bitcoin may see increased demand and potentially higher prices.

From a technical analysis perspective, Bitcoin is currently within a descending triangle pattern, signaling potential caution.

The cryptocurrency faces immediate resistance at $61,810, followed by $62,350. A breakout above the $61,250 pivot point could trigger renewed buying interest and push prices higher.

On the downside, immediate support is found at $60,510, with further support at the psychologically important $60,000 level.

The 50-day Exponential Moving Average (EMA) at $61,200 provides additional support, and holding above this level is crucial for maintaining bullish momentum.

The Relative Strength Index (RSI) stands at 55, indicating a neutral trend with room for upside if a breakout occurs.