Bitcoin Surpasses $45K After Almost Two Years

Bitcoin Surges Above $45,000, Reaching Highest Level Since April 2022

The world’s leading cryptocurrency Bitcoin (BTC) has witnessed a significant surge, surpassing the $45,000 mark for the first time since April 2022. This notable rally at the beginning of 2024 is fueled by renewed optimism surrounding the potential approval of exchange-traded spot bitcoin funds.

Reaching a 21-month peak of $45,488, BTC has demonstrated a robust performance, recording a remarkable 154% gain in the previous year – its most substantial increase since 2020. Currently, Bitcoin is trading at $45,344, marking a 2.6% increase, although it still lags behind its all-time high of $69,000, set in November 2021.

Ether, the cryptocurrency linked to the Ethereum blockchain network, has also experienced positive movement, with a 1% increase, reaching $2,376 on Tuesday.

Investor attention is primarily focused on the potential approval of a spot bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). The approval of such an ETF is anticipated to open up the BTC market to a broader range of investors.

Despite previous rejections based on concerns about market manipulation, there are growing indications that the SEC may approve some of the 13 proposed spot bitcoin ETFs, with a decision expected in early January.

Additionally, the cryptocurrency market benefits from increasing speculation that major central banks will implement interest rate cuts in the coming year. This positive sentiment has played a role in dispelling the uncertainties that lingered over the crypto markets after the challenges faced by FTX and other crypto-related businesses in 2022.

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