Bitcoin has surpassed the $45,000 mark for the first time since April 2022 as it welcomes the new year.
Bitcoin has surpassed the $45,000 mark for the first time since April 2022 as it welcomes the new year.
Bitcoin marked the beginning of the New Year on a high note, surpassing $45,000 for the first time since April 2022. The surge is fueled by optimism about the potential approval of exchange-traded spot bitcoin funds, the world’s largest cryptocurrency.
Having experienced its most significant yearly performance since 2020, Bitcoin achieved a 156% gain in the past year, reaching a 21-month peak of $45,532. While still below the record high of $69,000 in November 2021, it showed a 3.5% increase to $45,727 recently, as reported by Reuters.
Ether, the Ethereum blockchain’s associated token, also witnessed a 2.6% rise to $2,414 on Tuesday, following a 91% surge in 2023.
Cryptocurrency stocks, closely linked to bitcoin’s price, saw a substantial uptick in US premarket trading after facing significant losses in the final trading days of 2022. Riot Platforms, Marathon Digital, and CleanSpark all registered gains ranging from 11.3% to 14.8%.
Coinbase, a US cryptocurrency exchange, saw a 6.3% increase, while MicroStrategy, a software company heavily invested in bitcoin, experienced a notable surge of 9.4%.
Investor focus remains on the potential approval of a spot bitcoin ETF by the US securities regulator, a move that could attract substantial investments and bring millions of new participants into the market.
Historically, the US Securities and Exchange Commission (SEC) has rejected multiple proposals for spot bitcoin exchange-traded funds (ETFs), expressing concerns about market manipulation. However, recent signals suggest a shift, with indications that at least some of the 13 planned spot bitcoin ETFs might receive approval. A decision is expected in early January.
