- Bitcoin soared to $45,913.30 in early 2024, the first surpass since April 2022.
- Rising geopolitical tensions, and ETF anticipation fueling Bitcoin’s surge.
- 2023 saw Bitcoin rally 157%, with ongoing positive market sentiment.
Bitcoin experienced a significant increase at the beginning of 2024, reaching over $45,000 for the first time since April 2022. This rise occurred against a backdrop of increasing geopolitical tensions in the Red Sea and a positive sentiment regarding the approval of a bitcoin exchange-traded fund.
The leading cryptocurrency achieved a peak of $45,913.30 early on a Tuesday morning, as reported by Coin Metrics, marking its highest value since April 5, 2022, and the first instance of surpassing the $45,000 level since that date. It was last observed trading at $44,952.89, indicating a nearly 3% increase.
The surge in Bitcoin’s value underscores its growing reputation as a buffer against uncertainty, a characteristic that investors recognized in the previous year. Over the weekend, this sentiment was further amplified when a Maersk vessel was attacked by Houthi militants operating from Yemen and supported by Iran, reported CNBC.
While the recent six-month rally in Bitcoin has been largely attributed to the anticipated exchange-traded fund, its initial major boost earlier in the year was due to the regional banking crisis in the U.S. This crisis highlighted Bitcoin’s potential as an alternative to traditional financial systems and reinforced its role as a safeguard against economic instability.
The recent uplift in Bitcoin’s price is partly driven by persistent enthusiasm among traders about the potential U.S. approval of the first Bitcoin exchange-traded fund (ETF). Such an ETF would enable investors to invest in a product that reflects Bitcoin’s price movements without needing to hold the cryptocurrency themselves. This prospect is particularly attractive to larger institutional investors.
Enhancing this anticipation, on Friday, BlackRock among other prospective issuers, revised the registration documents for their proposed Bitcoin ETFs, detailing the names of authorized participants. The investment community interprets these updates as a sign that a decision from the U.S. Securities and Exchange Commission might be imminent. A significant number of industry experts are optimistic about the funds’ approval, with many expecting it to occur in January.
Bitcoin’s recent price surge is a continuation of its impressive performance in 2023, where it saw an increase of 157%. Many anticipate this upward trend to persist into 2024. Investors are particularly optimistic about the potential approval of a Bitcoin ETF expected sometime in January.
In 2023, Bitcoin saw a significant rally, increasing by 152%. Industry experts and commentators anticipate this upward trend to continue. This comes after a challenging 2022, characterized by high-profile project collapses, liquidity crises, and bankruptcies within the cryptocurrency sphere. Notably, FTX, once a leading cryptocurrency exchange, filed for bankruptcy in 2022, and its founder, Sam Bankman-Fried, was convicted on all seven criminal counts in 2023. Additionally, in the same year, Binance’s Changpeng Zhao pleaded guilty to criminal charges and resigned as CEO, settling with the Department of Justice for $4.3 billion.
Moreover, the upcoming Bitcoin halving event in the spring is also stirring excitement, as historically it has led to significant price increases. Moreover, with Federal Reserve officials expecting to implement at least three interest rate cuts after nearly two years of hikes, the cryptocurrency market is anticipated to benefit. Alongside Bitcoin, other cryptocurrencies have experienced growth, with Ether trading at around $2,367, marking an approximate increase of 1%.
