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Soar to New Heights: Bitcoin Breaks Past $45,000 Mark
Bitcoin broke records in the first few days of 2024, hitting a 21-month peak of $45,922 on Tuesday – a 156% gain since the start of last year. Ironically, the no. 2 cryptocurrency Ether followed closely behind, climbing 91% in 2023.
What sparked the massive spike in cryptocurrency markets? Investors across the globe are placing high bets for the possible approval of exchange-traded spot bitcoin funds, which are ETFs specializing in bitcoin investments. If given the green light, these funds will open up the market to millions of new investors and draw billions of dollars in investments.
In the past, the U.S. Securities and Exchange Commission had rejected multiple bitcoin ETF applications due to concerns of market manipulation. However, in the last few months, there have been indications that the regulator may soon approve at least some of the proposed bitcoin ETFs. It is expected the final decision will be reached sometime in early January.
Besides the prospect of a bitcoin ETF, there are other external factors at play. The trend of major central banks cutting interest rates in 2024 has been beneficial for crypto markets, particularly as it follows the FTX and other crypto-business failure in 2022. Similarly, it’s been noted that bitcoin prices tend to rise during U.S. election years due to Bitcoin halving cycles in 2012, 2016, and 2020.
For now, investors seem cautiously optimistic and have their eyes on the SEC’s upcoming decision. According to analyst Matteo Greco from Fineqia International, “We expect a positive approval and I won’t be surprised if after the approval, we see a retracement of lower price levels before we go up again.” He adds that a bitcoin ETF approval would “open the door to cohorts of investors that are out of this market at the moment and will definitely improve the liquidity of the market.”
On Tuesday, crypto stocks reflected the surge in bitcoin prices, with Riot Platforms, Marathon Digital, and CleanSpark gaining between 7% and 10%. Software firm and bitcoin investor MicroStrategy and ProShares Bitcoin Strategy ETF, which tracks bitcoin futures, also added 13.4% and 7.8% respectively.
Whether the surge in prices lasts will depend largely on the SEC’s decision on bitcoin ETFs in early January. Once again crypto bulls, as well as bears, will turn their attention to the regulator.
Clickbait Style Titles:
1. Jaw-Dropping! Bitcoin Breaks the $45,000 Mark
2. Unbelievable! Bitcoin Reaches Record High in 2021
3. Incredible Surge for Bitcoin – What’s Behind the Boost?
4. Will a New Bitcoin ETF Send Prices Soaring?
5. Crypto Bulls: Get Ready for a Wild Ride As Bitcoin Breaks Records!
