Bitcoin soared to its highest level in nearly three months after the U.S. senator reached a last-minute compromise on the terms of the $550 billion infrastructure bill to resolve how to tax crypto assets.

As policymakers made compromises on how to tax crypto assets at the last minute, Bitcoin soared to a nearly three-month high on Monday.

During New York trading hours, the largest digital token rose 5.4% to $46,245. The rebound is a continuation of recent momentum-tokens have risen about 17% in the past week.

Peer coins also benefited, with Dash, Ethereum and Litecoin all rising at least 5%. The Bloomberg Galaxy Encryption Index for large digital assets rose by 8.1%, which is the highest level since May.

Matt Maley, chief market strategist at Miller Tabak + Co, said: “This move should tell us that the worst period is now over. Unless it immediately reverses this trend, it may quickly rise to 50,000 US dollars, there may be some resistance there. Nevertheless, “from a technical point of view, this action is very bullish,” he said.

According to Bloomberg News, at the time of the rally, the bipartisan senator group has been debating the cryptocurrency reporting requirements in the $550 billion infrastructure bill and reaching a compromise. However, it is not yet clear whether it will get a vote.

Christine Smith of the Blockchain Association said on Bloomberg’s “QuickTake Stock” streaming show: “Washington now realizes how powerful the United States is and how many different people are passionate about cryptocurrency,” adding this The problem helps unify the cryptocurrency community. “The clearer and more certain the industry, the better we are in the long run.”

At the same time, traders are paying attention to the Bitcoin chart, looking for clues as to where they might go next. The token’s 14-day Relative Strength Index (RSI) indicated that it was overbought, but it broke the 200-day moving average during the rebound. The token can still find resistance there-as it did in May-although continuing to be above it will be considered a bullish development. Many people see $50,000 as the next key threshold.

“Bitcoin found its best shape again last week,” wrote Craig Erlam, senior market analyst at OANDA Europe. “Now it’s very back to the bullish field. The question is how far we can go this time.”

Mike McGlone of Bloomberg Intelligence wrote in a report that after a correction of more than 50% and a solid support base formed in a potential long-term bull market, the possibility of Bitcoin and Ether is conducive to resuming their upward trajectory. He said that historically, the year after the halving will appreciate sharply, and the original cryptocurrency may reach 100,000 US dollars.

“One question is whether the supply and demand situation has deteriorated since the beginning of 2022, compared with Bitcoin’s past,” McGraw wrote. “We believe that in a mature environment, the foundation is bullish.”

Read more: Watch Bitcoin this weekend and learn how Coinbase traded on Monday

(Update prices, update Senate news)
——With the help of Kenneth Sexton.

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