Bitcoin managed to hold above its key US$45,000 price level on Tuesday as a key vote on crypto regulation neared in the US Senate, raising hopes of a further bull run.
In late morning trading in London, Bitcoin was up 2% in the last 24 hours at US$45,791, giving it a market cap of just over US$860bn.
The increase means Bitcoin has broken above its 200-day moving average for the first time since April, which was then followed by a strong bull run for the digital currency, leading many analysts to predict a similar trend will emerge this time.
Market sentiment may also have been lifted overnight by news of a compromise between Democrat and Republican Senators regarding new crypto tax regulations which will introduce a definition of a crypto ‘broker’ into US law and tighten reporting requirements for the industry.
The deal will exempt crypto transaction validators, such as miners and stakers, from the broadened definition of broker, a change that many in the industry had been lobbying for.
However, the change did not make it into a massive US infrastructure bill that is due to be voted on later today, meaning the original wording, which includes validators in the definition of crypto brokers, will now face a vote in the US House of Representatives.