Bitcoin exceeds $45,000 this Tuesday for the first time since April 2022since the greatest cryptocurrency of the world began New Year with an explosion, driven by optimism about the possible bitcoin funds approval cash traded on the stock exchange.
In this way, Bitcoin hits a 21-month high exceeding $45,500, after gaining 156% last year in its highest annual performance since 2020. However, it remains far from the all-time high of $69,000. which it reached in November 2021. Ethereum, for its part, climbs 4.2% to $2,300 after climbing 91% in 2023.
In this framework, the Coinbase crypto exchange rises 6.3% in premarket and the Bitcoin investment company, MicroStrategy, rises 9.4%.
Bitcoin: the causes of the strong rise
The attention of the investors has focused on whether the American securities regulator will soon approve a Spot bitcoin ETFwhich would open the market to millions more investors and attract billions in investments.
In recent years, the United States Securities and Exchange Commission has rejected multiple requests to launch spot bitcoin ETFs, arguing that the cryptocurrency market is vulnerable to manipulation.
However, in recent months there have been increasing signs that regulators are willing to approve at least some of the 13 proposed spot Bitcoin ETFs, with a decision expected to come in early January.
The reaction to a possible rejection would be clear and there would likely be an immediate drop, according to Chris Weston, head of research at Pepperstone.
“However, in case we see the green light, the obvious question is whether we find ourselves in a scenario of buying by rumor and selling by fact or if it promotes another leg upwards,” he added in a note.
Increasing bets that major central banks rThe fact that interest rates will be cut this year has also favored cryptocurrencies, helping to shake off the pessimism that had settled on crypto markets after the collapse of FTX and other crypto business failures in 2022.
Cryptocurrencies: strong increases in other altcoins
On this day, altcoins also take their part and Solana (SOL) shoots up 10%, followed by Avalanche (AVAX) by 8.1% and Cardano (ADA) by 4.3%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
