Bitcoin surged beyond $45,000 on the first day of the new year, reaching a level not seen since April 2022.
Bitcoin. Image credit: MichaelWuensch via Pixabay, CC0 Public Domain
The world’s largest cryptocurrency recorded a remarkable 156% gain in 2023. Bitcoin hit a 21-month high of $45,922 before settling at $45,509, marking a 3.1% increase. Despite this impressive performance, it is still a significant distance from its all-time high of $69,000 achieved in November 2021.
On Tuesday, the second-largest cryptocurrency, Ether, saw a 1.2% increase, reaching $2,386.50, following a notable 91% surge in 2023.
Cryptocurrency-related stocks, which often mirror bitcoin price movements, experienced significant gains, too.
Investor attention remains focused on the potential approval of a spot bitcoin ETF by the U.S. securities regulator, which could attract significant investments and broaden market access for millions of investors. Despite multiple rejections in recent years, the U.S. Securities and Exchange Commission cites concerns about market vulnerability to manipulation as a reason for denying spot bitcoin ETF applications.
Additionally, the growing expectation of interest rate cuts by major central banks in the coming year has contributed to the positive sentiment in the cryptocurrency market, overcoming previous concerns following crypto-business failures in 2022.
Looking ahead to 2024, experts note the historical trend of bitcoin performing well during U.S. election years, aligning with Bitcoin halving cycles in 2012, 2016, and 2020.
Written by Alius Noreika