Mon 04 December 2023:
Bitcoin saw its price rising over $41,000 level for the first time in 20 months on Monday with hopes that exchange-traded funds (ETFs) would get approval.
The price of the world’s biggest cryptocurrency posted a daily hike of 5.65% to hit as high as $41,688 at 0530GMT, marking its highest level since April 2022.
The total value of the crypto market grew 3.77% on a daily basis to $1.54 trillion, according to data from the digital asset price-tracking website, CoinMarketCap.
This was also supported by data showing that inflation was slowing down in the US, fueling the expectations that the Fed had ended interest rate hikes.
The weekly price rise of Bitcoin exceeded 11% as of Monday.
The US Securities and Exchange Commission (SEC) is expected to approve ETFs for investments in Bitcoin, which is boosting professional investors’ interest in the cryptocurrency.
What Led to the Recent Price Rise?
The recent Bitcoin rally is attributed to the dovish comments from U.S. central bankers and the growing hopes for the approval of the Bitcoin spot ETF. Secondly, the traders also appear to have become optimistic about the upcoming rally. The recent reports show the holders withdrew 37,000 BTC during the second fortnight of November, indicating they were taking direct custody of their tokens.
Apart from this, the market anticipates a potential rate cut in the coming year following FED chairman, Jerome Powell’s comments on interest rates being in restrictive territory, which have influenced various markets.
Besides, the traders have been engaging in topside option plays, placing huge long trades, and expecting a price rise to $45,000 by the end of the year. This indicates growing confidence and expectations, which could contribute to the further upward movement.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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