On its first day of trading in 2024, the price of the world’s largest cryptocurrency, Bitcoin, exceeded $45,000 for the first time since April 2022.
According to Reuters news agency, the price of one bitcoin hit a 21-month high of $45,532. This digital currency showed its best performance since 2020 and saw its value increase by 156% last year.
It was last up 2.5% at $45,318, but still a long way from the November 2021 record high of $69,000.
Ether, the digital currency linked to the Ethereum blockchain network, rose 1.45 percent to $2,386 on Tuesday. Its value had increased by 91 percent in 2023.
Investors are focused on whether spot bitcoin ETFs get approval from the US securities regulator, which will bring millions more investors and billions into the bitcoin market.
The U.S. Securities and Exchange Commission has rejected several requests to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency poses a risk of market manipulation.
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However, there have been signs in recent months that regulators are ready to allow at least some of the 13 proposed spot bitcoin ETFs. A decision is expected to come, possibly as early as January 2024.
Chris Weston, head of research at Pepperstone, said the reaction to a possible rejection would be obvious and the price would likely drop immediately.
He added: ‘However, if we find out that permission is granted, the obvious question is whether we will believe the rumours, will the price go down or go up.’
Increasing claims of interest rate cuts by major central banks this year have also been a boon for cryptocurrencies, helping to lift the pessimism cloud over crypto markets in 2022.
Jupiter Zheng, Funds Partner at Hashkey Capital, said: ‘The crypto market is set to see significant growth this year, with key drivers from spot ETFs to investment funds, a decline in bitcoin mining and the US and There are more loose monetary policies around the world.’
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2024-05-13 15:44:36