Bitcoin surpasses $40,000 milestone with growing momentum, marking its highest level since April 2022
Bitcoin Surges Above $40,000 on Wave of Enthusiasm
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Bitcoin Breaks $40,000 Marker
Bitcoin has shattered the $40,000 barrier for the first time in 2022, riding a wave of momentum driven by optimism about U.S. interest rate cuts and anticipation of the approval of U.S.-stockmarket traded bitcoin funds.
The world’s largest cryptocurrency soared to as high as $40,210 during Sunday trade, marking its highest level since April 2022. As the new week began in Asia, Bitcoin remained steady at $40,011 in thin trade early on Monday.
Kyle Rodda, an analyst at Capital.com, expressed his thoughts on the recent surge, saying, “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.”
Market Momentum
Bitcoin’s value has more than doubled since the beginning of the year, breaking away from the so-called “crypto winter” that followed several scandals, including the collapse of exchange FTX last year. This surge comes as riskier investments and other interest-rate sensitive assets, such as gold, have also rallied in recent weeks amid speculation that the U.S. Federal Reserve will begin cutting rates in early 2023, after finishing rate hikes.
ETF Approval Anticipation
Reports in October suggested that the U.S. Securities and Exchange Commission will not appeal a court ruling that found the agency was wrong to reject a cryptocurrency firm Grayscale Investments’ exchange-traded fund (ETF) application. This development has fueled expectations that an eventual approval for a spot bitcoin ETF is imminent.
The argument goes that a spot bitcoin ETF would provide previously cautious investors with access to crypto through the stock market, potentially ushering in a new wave of capital into the sector.
Ether’s Rise
In addition to Bitcoin’s surge, Ether, the coin linked to the Ethereum blockchain network, also reached a 1-1/2 year high on Sunday, hitting $2,218 and stabilizing at $2,197 in Asia on Monday.
Despite these gains, both Bitcoin and Ether still fall short of their record highs from 2021, which were above $60,000 and $4,000, respectively.
The surge in Bitcoin and Ether’s values showcases the growing momentum behind cryptocurrency markets, driven by factors such as U.S. monetary policy, regulatory developments, and increasing investor interest.
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