Bitcoin Breaks $40,000 As Momentum Builds
by upasana sarbajna News 04 December 2023
Bitcoin has broken above $40,000 for the first time this year as it rides a wave of momentum on broad enthusiasm about U.S. interest rate cuts and as traders anticipate the imminent approval of U.S.-stock market traded bitcoin funds. – Reuters.
The biggest currency in the world hit as high as $40,210 in the trade on Sunday, which is the highest since April 2022. It was stable at $40,011 in thin trade early in Asia day on Monday.
“We’ll see if it sticks throughout the day, but Bitcoin loves a break of high psychological levels, so it excites the bit-bugs again and adds to this momentum,” said Kyle Rodda, the Capital.com analyst.
For this year, bitcoin more than doubled because it has thrown off the doldrum of the apparent “crypto winter,” which followed the scandals, which included the collapse of the exchange FTX in the previous year.
Riskier investments, along with other interest rate-sensitive assets like gold, have also rallied pretty hard over the previous few weeks as the markets bet that the U.S. Federal Reserve is done with hiking the rates and will begin cutting early in 2023.
Reports in October say that the US Securities and Exchange Commission will not be appealing a court ruling that found the agency has done it wrong by rejecting an application for the exchange-traded fund from the crypto organization Grayscale Investments, which have also driven bets that the eventual approval is pretty nigh.
The spot bitcoin ETF, as the argument continues, would be allowing the previously cautious investors access to crypto through the stock market, signaling a completely new wave of capital within the sector.
Ether, the coin that is linked to the Ethereum blockchain network, had also developed a 1-½ year high on Sunday by touching $2,218 and standing at $2,197 on Monday in Asia. Both ether and bitcoin are well below their highest records of 2021, which were more than $4,000 and $60,000, respectively.