Bitcoin the largest digital asset, has surged above $42K as it continues to recover in 2023 on expectations of declines in American interest rates and increased demand from the exchange-traded funds (ETF) sector.
Bitcoin rose 6.1 percent to $42,144. Bitcoin was last at these levels in April 2022, before the TerraUSD stablecoin crash that brought a $2 trillion drop in digital assets.
Investors are increasingly convinced that the Fed will stop hiking interest rates as inflation cools, and attention is turning to the likely size of next year’s rate cuts. The changing trend triggered a rise in global markets and increased interest in digital currencies.
The crypto industry is also awaiting the outcome of applications from companies such as BlackRock to launch the first spot Bitcoin ETFs in the US. Bloomberg Intelligence expects some of these products to receive Securities and Exchange Commission (SEC) approval by January.
“Bitcoin continues to be supported by optimism about SEC approval of ETF and Fed rate cuts in 2024,” market analyst Tony Sycamore of IG Australia Pty said in a note. Sycamore added that he points to $42,330 as the next level to watch.
Bitcoin’s resurgence after the crypto crash of 2022 leaves behind a US crackdown that put Sam Bankman-Fried behind bars for fraud at FTX and handed criminal records and huge fines to leading crypto exchange Binance and its founder Changpeng Zhao .
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