The price of Bitcoin (BTC) surged more than 5% on Monday to cross the $41,000 mark for the first time in 19 months. This is the cryptocurrency’s highest price since April 2022, before the downfall of crypto stablecoin TerraUSD, which hastened a $2 trillion landslide in digital assets.
Bitcoin price, which has soared up to 150% since the beginning of the year, has outperformed stocks and gold as a top-performing investment. However, the price is still down around 42% from its November 2021 all-time high of over $69,000.
The reason for the increase in Bitcoin is fueled by the anticipation of a possible spot c (ETF) approval in the United States (U.S.) and expectations of the U.S. Federal Reserve cutting interest rates in 2024. The settlement between Binance and the U.S. Department of Justice has also added to this bullish sentiment of the cryptocurrency.
“Now that $40,000 has been revisited for the first time in almost 19 months, $48,000 and $52,000 look to be the next significant lines in the sand,” said Antoni Trenchev, co-founder of digital asset company Nexo.
Further, the potential approval of a spot bitcoin ETF, which is expected to be approved by the U.S. Securities and Exchange Commission (SEC) in January 2024, is looked at as the biggest driver behind the surge in Bitcoin price.
“This surge represents a year-to-date peak for Bitcoin, showcasing an impressive 140% increase since the beginning of the year. More than just a numerical value on a chart, the surge in Bitcoin price reflects a broader shift in the sentiment around crypto. The current upward trend is largely attributed to mounting expectations of a potential approval by the SEC for a spot Bitcoin ETF in January,” said Rahul Pagidipati, CEO, ZebPay.
Also, the Bitcoin halving event that happens once in every four years will be back in April 2024 and has served as another bullish indicator for the cryptocurrency.
Michael Novogratz, the founder and Chief Executive Officer (CEO) of Galaxy Digital Holdings Ltd., predicts Bitcoin will reach its previous peak of $69,000 a year from now, with billions of dollars flowing into the ETF space within the first year.
