In an impressive start to 2024, Bitcoin soared above $45,000 on Tuesday, marking its highest level since April 2022. The renowned cryptocurrency, which exhibited a robust 154% gain last year, achieved a 21-month peak at $45,488, showcasing its strongest performance since 2020. While currently trading at $45,344, Bitcoin has yet to reach its peak of $69,000 in November 2021.
Ether, the cryptocurrency associated with the Ethereum blockchain network, experienced a 1% increase, reaching $2,376 on Tuesday.
Investor attention is focused on the potential approval of exchange-traded spot bitcoin funds by the U.S. Securities and Exchange Commission (SEC). The approval of such funds would open up the bitcoin market to a broader audience of investors.
Despite the rejection of multiple spot bitcoin ETF applications in the past due to concerns about market vulnerability to manipulation, recent indications suggest a more favorable outlook.
Anticipation is growing for a decision on the 13 proposed spot bitcoin ETFs, with expectations leaning towards an announcement in early January. The prospect of major central banks reducing interest rates throughout the year has also contributed to
the positive momentum in the cryptocurrency market. This development has helped dispel the gloom that settled over crypto markets following the challenges faced by FTX and other crypto-related businesses in 2022.
Jupiter Zheng, partner of liquid funds at HashKey Capital, expressed optimism about the crypto market's growth in the coming year. Key factors influencing this growth include increased 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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