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Bitcoin Rises Above $45k Price to Reach Highest Level Nearly Two Years

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2024 Kickoff Witnesses Bitcoin’s Strongest Leap Since 2022, Regulatory Hopes Drive Momentum

  • Bitcoin skyrockets to $45,532, hitting a 21-month peak after a remarkable 156% gain in 2023.
  • Investors eagerly await the SEC’s decision on spot Bitcoin ETFs, signaling a potential shift in regulatory stance.
  • Favorable factors, including bets on interest rate cuts and recovery from 2022 setbacks, propel Bitcoin and the broader crypto market to a promising start in 2024.

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Bitcoin’s recent performance has been nothing short of remarkable, catapulting above the $45,000 mark. This surge marks a significant milestone, bringing Bitcoin to its highest level since April 2022. The key driving force behind this bullish trend is the widespread optimism surrounding the potential approval of spot Bitcoin Exchange-Traded Funds (ETFs).

In 2023, Bitcoin exhibited exceptional strength, boasting a staggering gain of 156%, making it the most robust yearly performance since 2020. On Tuesday, data from coinmarketcap shows Bitcoin touched a 21-month peak at $45,532, though still trailing behind the record high of $69,000 reached in November 2021. Ether, associated with the Ethereum blockchain, demonstrated a parallel upward trajectory, registering a 1.45% increase at $2,386, having surged by an impressive 91% throughout 2023.

Also Read: Bitcoin ETF Talks Between SEC and Fund Managers Now in Advanced Stages: Report

Regulatory Landscape and Market Speculation

Investor attention is squarely fixed on the imminent decision by the U.S. Securities and Exchange Commission (SEC) regarding spot Bitcoin ETFs. Historically, the SEC has been hesitant, rejecting applications due to concerns about the vulnerability of the cryptocurrency market. However, recent indications suggest a potential shift, with expectations pointing towards the approval of at least some of the 13 proposed spot Bitcoin ETFs, possibly in early January.

Chris Weston, Head of Research at Pepperstone, anticipates a clear-cut market reaction based on the SEC’s decision. If approved, the question arises: Will it trigger a “buy the rumor, sell-on-fact” scenario or fuel another leg of growth? The significance lies in the prospect of opening the Bitcoin market to millions of investors, a substantial development for the cryptocurrency landscape.

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Factors Influencing Bitcoin’s Rise and Recent Price Movement

Forecasts for 2024 suggest a bullish trajectory for Bitcoin, propelled by bets on major central banks cutting interest rates. This optimism stands in stark contrast to the gloom that overshadowed the crypto market in 2022, following the collapse of FTX and other crypto-businesses. Noteworthy influencing factors include the anticipated influx of investment funds from spot ETFs, Bitcoin halving, and a more accommodative monetary policy both in the United States and worldwide.

Bitcoin wasted no time in the new year, surging more than 6% on the first day and surpassing the $45,000 mark. The driving force behind this surge is the prevailing anticipation of the SEC’s approval of spot Bitcoin ETFs. The positive momentum extends to the broader crypto market, with Ether up by 4% and notable gains seen in Solana and Avalanche, marking a promising start to the year for the cryptocurrency space.

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