- Bitcoin and other cryptocurrencies reached new 18-month highs, driven by recent momentum and positive factors.
- Bitcoin’s price surged 7% in 24 hours to surpass $37,900, signaling potential for a new bull market.
- Despite its recent rise, Bitcoin remains significantly below its all-time high, impacted by regulatory challenges.
Bitcoin (BTCUSD) and various other cryptocurrencies surged on Thursday, reaching new 18-month highs. This upward momentum builds upon a recent rally and is underpinned by several factors indicating the potential for further gains, reported leading publication Barrons.
In the last 24 hours, Bitcoin’s price has surged by 7%, surpassing $37,900. This marks its highest value since early May 2022 when the cryptocurrency market endured a severe downturn triggered by the collapse of the stablecoin network Terra, leading to a series of industry bankruptcies. Within a matter of weeks, the leading cryptocurrency has soared by over a third, sparking discussions about the emergence of a fresh bull market and bringing an end to a prolonged period of historically low volatility and trading volumes.
“Looking ahead, the breakthrough above the $37,000 mark will be a significant milestone and our outlook is optimistic concerning Bitcoin’s price action. The momentum appears poised to persist as the cryptocurrency market continues to garner attention from institutional investors.”
Douglas Comin, senior crypto options trader at the investment group XBTO
Bitcoin maintains its substantial outperformance compared to the Dow Jones Industrial Average and S&P 500. This impressive performance is driven primarily by factors originating within the cryptocurrency ecosystem, although the overall environment for assets sensitive to risk has also shown signs of improvement. The primary driving force behind this surge in cryptocurrency value is the anticipation that U.S. regulatory authorities will soon approve the inaugural spot Bitcoin exchange-traded fund (ETF). Such an approval is anticipated to bring about a new wave of interest from both retail and institutional investors in the realm of cryptocurrencies.
“There is no question that the very positive action in bitcoin this year continues to be very impressive.”
Matt Maley, chief market strategist with Miller Tabak + Co.
Nonetheless, it remains a considerable distance away from its all-time high. In November 2021, Bitcoin reached its pinnacle at $68,789 before experiencing a sharp decline in 2022. This downturn coincided with the Federal Reserve’s decision to increase interest rates and a series of corporate collapses, notably including the crypto exchange FTX in November 2022.
Subsequently, the cryptocurrency industry witnessed a widespread crackdown. Regulatory authorities initiated legal actions against several major players, including Coinbase and Binance. In the most recent development, a jury found FTX founder Sam Bankman-Fried guilty of defrauding customers, lenders, and investors.
