Bitcoin's price surged nearly 7% on the first trading day of the new year, surpassing $45,000 and reaching its highest level in almost two years.
At the opening of the market on January 2nd, the price of Bitcoin reached $45,000 per coin, an increase of $1,000 compared to the previous day. The price continued to rise, at one point approaching $45,520 per coin, a gain of over 7% in 24 hours. The $45,000 price level was then maintained throughout the first trading session of 2024, following a consolidation trend.
Not just Bitcoin, but almost all popular cryptocurrencies on the market saw price increases overnight. Ether rose 4.5%; Solana and Avalanche both gained more than 10%.
According to CoinDesk , the reason for this surge is similar to recent weeks. The market is euphoric with the expectation that the US Securities and Exchange Commission (SEC) will "greenlight" the launch of several spot Bitcoin ETFs. Last weekend, Reuters reported that the SEC may begin notifying Bitcoin ETF managers that their applications have been approved. This is believed to begin today.
Recently, there have been many indications that regulators are ready to approve at least one of the 13 proposed Bitcoin ETFs. Many expect this decision to be made in early January.
Furthermore, the expectation that major central banks will cut interest rates this year is also a catalyst for the rise of cryptocurrencies. This move would help dispel the gloom that has hung over the market since the collapse of FTX and other crashes in 2022.
Bitcoin ended 2023 above $42,200 per coin, an increase of approximately 152%. This was the cryptocurrency's strongest year of price accumulation since 2021. However, the current level is still far below the record high of $69,000 reached in November 2021.
Jupiter Zheng, a partner at market research firm HashKey Capital ( Singapore ), believes that the cryptocurrency market will grow this year thanks to investment flows from ETFs, the Bitcoin "halving" event (which occurs every four years and reduces miner rewards by half), and more favorable monetary policies in the US and other countries around the world.
While investors are euphoric, Chris Weston, head of research at Pepperstone (Australia), is still mindful of the scenario where Bitcoin ETFs are rejected. He believes the negative reaction would be clear and could result in an immediate drop in market value. "Instead of asking whether Bitcoin ETFs are getting the green light, the question should be whether we should buy on the rumor and whether cryptocurrencies are entering a new bull cycle," he said.
Xiao Gu (according to CoinDesk , Reuters )
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