Bitcoin rallied to its highest price in 2023, as the cryptocurrency jumped 2.87% to a high of $38,834 on Friday. The increase in the value of Bitcoin marks its peak since May 2022 just before the disruption of the stable TerraUSD ecosystem, causing a ripple effect in the sector and starting a gradual decline in asset values. The second largest token by market cap Ethereum is also doing well and is trading above the psychological benchmark of $2,000 with a price of $2,090.4 on December 1st.
The rally is seen across the cryptocurrency market with other popular coins such as Dogecoin, and Polkadot also reporting gains. The recent rally has infused the investors with fresh confidence as institutional investors have also shown interest in the cryptocurrency. Recently MicroStrategy Inc., the leading publicly traded corporate entity holding Bitcoin, raised an additional $593 million from the cryptocurrency.
130% rebound this year
Bitcoin’s recent surge has increased the cryptocurrency’s chances of hitting $40,000 by the end of December. The year 2023 was great for Bitcoin, as it bounced around 130% after a difficult period for cryptocurrencies in 2022. According to Bloomberg News, the optimism surrounding possible interest rate cuts by the Federal Reserve in the coming year, coupled with the anticipation of the United States allowing its inaugural point Bitcoin exchange funds, contributed to a powerful combination of factors driving this positive trend.
“To get to $40,000, we just need that approval for the spot Bitcoin ETF,” Fiona Cincotta, senior financial markets analyst at City Index Ltd. told Bloomberg.
Amidst the bullish sentiment surrounding Bitcoin, Bloomberg Intelligence predicts that a group of spot Bitcoin exchange-traded funds (ETFs) in the United States will secure approval from the Securities and Exchange Commission by January.
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Updated: 01 Dec 2023, 17:13 IST