Bitcoin price hits near two-year high

Bitcoin prices rose nearly 7% on the first trading day of the new year, surpassing $45,000 and reaching a near two-year high.

At the market opening on January 2, the Bitcoin price reached $45,000 per coin, up $1,000 from the previous day. The price continued to rise, at one point approaching $45,520 per coin, up more than 7% in 24 hours. The $45,000 price was then maintained throughout the first trading session of 2024 and followed an accumulation trend.

Not just Bitcoin, almost all popular cryptocurrencies on the market increased in price overnight. Ether increased 4.5%; Solana and Avalanche both increased more than 10%.

According to CoinDesk , the reason for this increase is similar to the developments in recent weeks. The market is excited by the expectation that the US Securities and Exchange Commission (SEC) will "greenlight" the launch of several spot Bitcoin ETFs. Last weekend, Reuters reported that the SEC could start notifying Bitcoin ETF managers that their applications have been approved. This is expected to start today.

There have been recent signs that regulators are poised to approve at least one of the 13 proposed Bitcoin ETFs, with many expecting a decision as early as January.

Additionally, the expectation that major central banks will cut interest rates this year is also a catalyst for the cryptocurrency rally, a move that will help dispel the gloom that has enveloped the market since the FTX crash and a series of other crashes in 2022.

Bitcoin ended 2023 above $42,200 a coin, up about 152%. This is the strongest year for the cryptocurrency since 2021. However, the current level is still far from the record $69,000 recorded in November 2021.

Jupiter Zheng, partner of market research firm HashKey Capital (Singapore), believes that the cryptocurrency market will grow this year thanks to investment capital from ETF funds, the Bitcoin "halving" event (occurring every 4 years, reducing miners' rewards by half) and more appropriate monetary policies in the US and other countries around the world .

While investors are excited, Chris Weston, head of research at Pepperstone (Australia), still notes the scenario of Bitcoin ETFs being rejected. Accordingly, the negative reaction will be very clear and can record an immediate decline in market prices. "Instead of asking whether Bitcoin ETFs will be green-lighted, the question should be whether we should buy the rumor and whether the cryptocurrency will have a new bull cycle," he said.

Xiao Gu (according to CoinDesk , Reuters )

Source link