Bitcoin reaches $40,000 as momentum increases
For the first time since May 2022, bitcoin has above $40,000 as traders wager on the impending approval of U.S. stock market-traded bitcoin ETFs and as the cryptocurrency rides a wave of enthusiasm surrounding U.S. interest rate cuts.
The largest cryptocurrency in the world reached its highest level since April 2022 on Monday, hitting $41,748. This appeared to shake off the negativity that had enveloped the cryptocurrency markets after FTX’s collapse and other cryptocurrency-related business failures earlier in the year.
I believe the reason is that policy rate expectations in the US have overshot and will decline more in December than they will elsewhere.
Stated Colin Asher, senior economist at London-based lender Mizuho.
At $41,627, it was up 4% as of late. After a 50% increase since mid-October, the market has seemed to mark a decisive shift away from the bearishness of 2022 and early 2023 according to Justin d’Anethan, head of business development for Asia-Pacific at Keyrock, a company that creates digital assets.
While future reversals were not implausible, D’Anethen stated that lows of approximately $16,000 a year ago which is probably marked the bottom and that signs of institutional buying through November demonstrated a new leg of interest.
There has also been speculation that an approval is imminent after reports were received in October that the U.S. Securities and Exchange Commission will not appeal a court decision that determined the agency had erred in rejecting an exchange-traded fund application.
A spot bitcoin ETF might open up the stock market to previously hesitant investors, bringing in fresh investment and stimulating the market.
A 50% increase since mid-October appears to indicate a clear departure from the pessimistic outlook for 2022 and the first half of 2023.
Stated Justin d’Anethan, head of business development for Keyrock, a company that creates digital assets markets, in the Asia-Pacific region
Bitcoin criminal investigation
A years-long criminal investigation by the United States into Binance, the largest cryptocurrency exchange in the world and a vital component of the global cryptocurrency market, has also been settled, to the delight of investors. The agreement permits the business to carry on, with Binance founder Changpeng Zhao stepping down following his guilty plea to violating US anti-money laundering regulations.
Over 150% has been added to Bitcoin so far this year it added $593 million to its holdings during November. In the meantime, riskier assets and other assets that are sensitive to interest rates, like gold, have also seen significant price increases in recent weeks as investors bet that the US Federal Reserve has completed raising interest rates and would begin reducing them in 2024
Investor in bitcoin Microstrategy (MSTR.O) said last week
In the meantime, riskier assets and other assets that are sensitive to interest rates, like gold, have also seen significant price increases in recent weeks as investors bet that the US Federal Reserve has completed raising interest rates and would begin reducing them early in 2024.
Ether, the currency associated with the Ethereum blockchain, also reached $2,264 today, a 1-1/2 year high. Both ether and bitcoin are still well behind their record highs of $4,868 and $69,000, respectively, set in 2021.
As reports indicated that U.S. inflation was fast falling, the euro rose 3% against the dollar last month and reached its best level since August at more than $1.10. In November, the dollar index experienced its largest monthly decline in a year, falling 3.1%.
