ACTION PUNJAB NEWS Desk: On Tuesday, Bitcoin, the leading cryptocurrency, soared past the $45,000 mark, achieving its most significant level since April 2022. This surge comes amidst growing enthusiasm over potential approvals for exchange-traded spot bitcoin funds.
At $45,488, Bitcoin hit a 21-month peak, marking a remarkable 154 per cent surge over the past year, showcasing its most robust performance since 2020. Despite a 2.6 per cent increase to $45,344 in the latest trading update, it remains below its peak of $69,000 recorded in November 2021.
Additionally, Ether, the cryptocurrency linked with the Ethereum blockchain network, saw positive movement, rising by 1% to hit $2,376 on the same day.
Anticipated SEC decision and market sentiment drive Bitcoin’s resurgence
The focus of investors has honed in on the looming possibility of the US Securities and Exchange Commission (SEC) greenlighting a spot bitcoin exchange-traded fund (ETF). Such an approval would significantly broaden the accessibility of the bitcoin market to a more extensive investor base. Despite a history of rejections, there’s a rising tide of optimism surrounding the potential approval of some of the 13 proposed spot bitcoin ETFs expected in early January.
The market sentiment isn’t solely tethered to the ETF prospects but also hinges on the anticipation of interest rate cuts by major central banks in the forthcoming year. These factors collectively contribute to a bullish outlook for cryptocurrencies, offsetting the gloom that pervaded the crypto markets after the setbacks experienced by FTX and other crypto firms in 2022.
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Jupiter Zheng, Partner of Liquid Funds at HashKey Capital, conveyed to Reuters his bullish stance on the cryptocurrency market’s trajectory in 2024. He underscored the potential for substantial growth in the crypto landscape, attributing it to several pivotal factors such as the anticipated inflow of investment funds from spot ETFs, the Bitcoin halving, and a more accommodative global monetary policy both in the United States and worldwide.
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(Inputs from agencies)
