Follow Us on Google News
Bitcoin surged past the $40,000 threshold for the first time this year, riding a wave of momentum fueled by optimism regarding U.S. interest rate cuts and the imminent approval of U.S.-traded Bitcoin funds.
Reaching as high as $40,210 in Sunday’s trade, the world’s leading cryptocurrency maintained stability at $40,011 early on Monday in thin Asia trading. Capital.com noted, “We’ll see if it sticks throughout the day, but Bitcoin loves a break of big psychological levels, so it excites the bit-bugs again and adds to this momentum.”
Throughout the year, Bitcoin has more than doubled, shedding the challenges of the so-called “crypto winter” that followed past scandals, including the collapse of the FTX exchange last year. Riskier investments and other interest-rate-sensitive assets, such as gold, also experienced a robust rally in recent weeks, fueled by market speculation that the U.S. Federal Reserve has concluded rate hikes and is poised to initiate cuts in early 2023.
October reports revealing that the U.S. Securities and Exchange Commission won’t appeal a court ruling, which deemed the agency wrong in rejecting an exchange-traded fund application from crypto firm Grayscale Investments, have further bolstered expectations of imminent approval. The prospect of a spot bitcoin ETF potentially opening doors for cautious investors to access crypto via the stock market is seen as a catalyst for a new wave of capital influx into the sector.
Ether, the cryptocurrency linked to the Ethereum blockchain network, also achieved a 1-1/2 year high on Sunday, reaching $2,218 and stabilizing at $2,197 in Asia on Monday. Despite these gains, both Bitcoin and ether remain below their 2021 record highs, surpassing $60,000 and $4,000, respectively.
