Bitcoin surges past $41k for the first time since April 2022
Bitcoin surged past $40,000 for the first time this year, riding a wave of momentum fueled by widespread enthusiasm for anticipated US interest rate cuts. Traders are also optimistic about the imminent approval of US stock market-traded bitcoin funds. This marks a new year-to-date high for BTC, which is up over 140% since January 1.
On Monday, the world's largest cryptocurrency reached $41,522, its highest level since April 2022, signaling a departure from the downturn that had gripped crypto markets following the collapse of FTX and other crypto businesses in 2022. Ether, the digital coin associated with the Ethereum blockchain network, also experienced a boost, reaching a one-and-a-half-year high of $2,264.
In recent weeks, riskier investments and interest-rate-sensitive assets, including gold, have seen substantial rallies. This surge is attributed to market speculation that the US Federal Reserve has concluded its rate hikes and is poised to initiate cuts early in 2024. Despite these gains, both Bitcoin and ether remain significantly below their respective record highs set in 2021 at $69,000 and $4,868.
Key Takeaways
In October, reports surfaced that the US Securities and Exchange Commission (SEC) would not contest a court ruling that deemed the agency's rejection of an exchange-traded fund (ETF) application as incorrect. This development has fueled speculation that approval for a spot bitcoin ETF is on the horizon, prompting increased optimism among investors. The potential introduction of a spot bitcoin ETF is seen as a significant development that could open the doors for hesitant investors to enter the crypto market through the stock market, resulting in a fresh influx of capital into the sector. Standard Chartered predicts that Bitcoin could reach six figures by the end of the following year based on the "earlier-than-expected introduction" of the spot ETFs. Investors have also expressed satisfaction with the recent resolution of a long-standing US criminal investigation into Binance, the world's largest cryptocurrency exchange and a crucial player in the global crypto market.
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