Bitcoin Price Approaches $63,000 After Several Weeks of Downtime

Bitcoin, the flagship cryptocurrency has updated its price maximum towards $63,000 along with an increase in market capitalization.

April 13, 2021 | AtoZ Markets – On Tuesday, April 13, the price of one bitcoin updated its all-time high at around $62,700. At the time of this writing, the price of the BTC/USD pair is changing hands above $62,400.

Thus, the cryptocurrency surpassed its all-time maximum reached on March 13 at $61,900. 

Bitcoin chart. Source: TradingView

The market capitalization of the cryptocurrency rose 4.34% to $1.16 trillion. Recall that in early April, the total cryptocurrency market capitalization exceeded $2 trillion. Now, this figure is $2.13 trillion.

One of the reasons for the growth of Bitcoin may be inflation in the United States – measures to support the economy led to the release of a significant amount of cash into the market, in connection with this, investments in cryptocurrencies increased. Bitcoin is considered one of the best assets for hedging inflation risks.

Bitcoin’s growth is taking place against the backdrop of a fall in dominance in terms of capitalization. As AtoZ Markets reported, Bitcoin dominance plummeted collapsed to a two-year low, and coincided with the altcoin season.

Bitcoin price in Nigeria on the rise

Meanwhile, the Bitcoin price in Nigeria has risen above $90,000, a 70% premium. The sharp rise, as AtoZ Markets reported, is due to the Central Bank of Nigeria recently shutting down all cryptocurrency-related bank accounts. But Nigeria likely has the highest premium in the world because the country, in particular, is also the leader when it comes to Bitcoin adoption, based on the recent data.

Eventually, arbitrage traders will find a solution to bypass restrictions, and the price gap should tighten. At the moment, however, there is no effective way to “profit” from the arbitrage.

Furthermore, when a hefty premium is seen in local fiat currency, it does not justify a similar price gap for dollar-denominated stablecoin trading.

Thus, such differences in pricing across various countries represent the risks, red tape, taxes, and inefficiencies of converting fiat between currencies and sending fiat money across borders.

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