The world’s largest cryptocurrency on its first day of trading in 2024 Bitcoin The price has crossed $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 percent at $45,318, but is still a long way from the record high of $69,000 hit in November 2021.
The price of Ether, a 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 or not 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 Cryptocurrency There is 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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#Bitcoin #price #hits #21month #high
2024-09-05 21:39:18
Bitcoin Surges on Its First Day of Trading in 2024: A Comprehensive Overview
Table of Contents
On the first trading day of 2024, Bitcoin, the world’s largest cryptocurrency, reached a significant milestone, crossing the $45,000 threshold for the first time since April 2022. This remarkable price surge has garnered considerable attention from investors and analysts alike, marking a notable moment in the cryptocurrency market.
Bitcoin’s Price Performance
According to a report by Reuters, Bitcoin’s price soared to a 21-month high of $45,532, showcasing its best performance since 2020 with a staggering 156% increase in value over the past year. While it saw a slight dip to $45,318 shortly after, the cryptocurrency still remains well below its all-time peak of $69,000 reached in November 2021. The trading activity reflects a growing optimism surrounding Bitcoin and the broader cryptocurrency market.
The Ethereum Context
In parallel, Bitcoin’s counterpart, Ethereum (Ether), also experienced a boost, rising 1.45% to $2,386 on the same day. Ethereum has had a strong year as well, recording an impressive 91% increase in 2023. Both cryptocurrencies’ performances indicate a revival in market sentiment and investor confidence.
Market Dynamics and ETF Approval
A critical element driving the current market dynamics is the anticipation surrounding the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The approval of these ETFs could introduce millions of new investors and billions in capital, significantly impacting the Bitcoin market. Historically, the SEC has rejected various requests for spot Bitcoin ETFs, citing concerns over potential market manipulation.
However, recent trends signal a possible shift in regulatory attitudes, with analysts suggesting that the SEC might approve some of the 13 proposed spot Bitcoin ETFs, with a decision expected as early as January 2024. Chris Weston, head of research at Pepperstone, emphasized the market’s speculative nature, stating that a rejection of these ETFs could cause an immediate price drop, while approval could lead to further price increases.
Central Bank Policies and Market Sentiment
Additionally, the broader economic context, including increasing speculations about potential interest rate cuts by major central banks, has positively influenced the cryptocurrency market. These changes in monetary policy have helped lift the prevailing pessimism that overshadowed the crypto landscape in 2022. Jupiter Zheng, a Funds Partner at HashKey Capital, highlighted that the crypto market is poised for significant growth in 2024, fueled by developments such as spot ETFs, investment funds, and shifting monetary policies.
Conclusion
As Bitcoin embarks on this new trading year, its performance on the first day is a vital indicator of market trends and investor sentiment. With potential ETF approvals and shifting economic conditions serving as key drivers, Bitcoin and other cryptocurrencies may continue to experience substantial growth in the coming months. Investors, traders, and enthusiasts alike are keenly observing these developments, as the cryptocurrency market stands on the precipice of a new and exciting chapter.
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