Tech
Bitcoin surpasses $45,000 for the first time since April 2022
Bitcoin rose above $45,000 on Tuesday for the first time since April 2022, as the world’s largest and best-known cryptocurrency started 2024 with a bang, buoyed by optimism over the possible approval of exchange-traded spot bitcoin funds.
Bitcoin hit a 21-month high of $45,488, after gaining 154% last year, posting its strongest performance since 2020. It was last up 2.6% at $45,344, but remains far from record high of $69,000 reached in November 2021.
Ether, the coin linked to the Ethereum blockchain network, was up 1% at $2,376 on Tuesday.
Investor attention has been squarely focused on whether the U.S. securities regulator will soon approve a spot bitcoin ETF, which would open the bitcoin market to millions of other investors.
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The U.S. Securities and Exchange Commission has rejected numerous requests to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency market is vulnerable to manipulation.
In recent months, however, there have been growing signs that regulators are ready to approve at least some of the 13 proposed bitcoin spot ETFs, with expectations that the decision will likely come in early January.
Increased bets that major central banks will cut interest rates this year have also been a boon for cryptocurrencies, helping to shake off the gloom that had settled on cryptocurrency markets following the collapse of FTX and more cryptocurrency industry failures in 2022.
“The cryptocurrency market is set to see notable growth this year, with key factors impacting investment fund inflows from spot ETFs, the Bitcoin halving, and more accommodative monetary policy in both the U.S. and world,” said Jupiter Zheng, liquid fund partner at HashKey Capital.
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