Bitcoin has surged past the $45,000 mark for the first time in almost two years, registering a 4% jump to its highest level since April 6, 2022.
Key Takeaways
- Bitcoin surpasses $45,000, achieving its highest level in almost two years, buoyed by a 4% surge.
- Anticipation of a spot ETF approval intensifies, contributing to a 15% increase in Bitcoin’s value since the start of December.
- Traders exhibit a fear of missing out (FOMO) ahead of the Jan. 10 SEC decision on the spot ETF, leading to increased buying activity.
- Optimism prevails in the market, with traders expecting Bitcoin to reach $50,000 soon, supported by the potential approval of the spot ETF.
Bitcoin Surges Past $45,000 Mark
Bitcoin has experienced a notable upswing, surpassing the $45,000 threshold for the first time in nearly two years. The cryptocurrency’s value rose by as much as 4%, reaching its highest level since April 6, 2022, and is currently trading at $44,844 as of 9:45 a.m. Singapore time.
#Bitcoin surpasses $45,000 for the first time in nearly two years on #ETF approval hope.
Read more ⬇️https://t.co/cfTUjyevZ6
— NDTV Profit (@NDTVProfitIndia) January 2, 2024
Spot ETF Approval Anticipation Drives Rally
The recent surge in Bitcoin’s value is closely tied to heightened expectations of the approval of a spot exchange-traded fund (ETF) directly investing in the cryptocurrency. This optimism has propelled Bitcoin’s value by over 15% since the beginning of December.
Traders are exhibiting a fear of missing out (FOMO), particularly in the US and Europe, as the Jan. 10 deadline for the US Securities and Exchange Commission (SEC) to decide on the spot ETF draws nearer.
Traders Eye $50,000 and Broad Market Sentiment
With positive sentiment prevailing in the market, traders are optimistic about Bitcoin reaching $50,000 soon, propelled by the potential approval of the spot ETF. The broader market sentiment is influenced by expectations of declining interest rates in the United States.
Bitcoin’s resurgence over the last 12 months is seen as partially mending the fallout from the sharp crash in 2022 that impacted the entire crypto industry. However, it’s important to note that Bitcoin is still below its pandemic-era record of nearly $69,000 in 2021.
To Conclude
Bitcoin’s recent surge beyond $45,000 marks a significant milestone, driven by heightened anticipation of a spot ETF approval. With a fear of missing out evident among traders, the cryptocurrency’s value has risen over 15% since December.
The market remains optimistic, with expectations of Bitcoin touching $50,000 soon, although it remains below its 2021 record peak.
