A new annual record for Bitcoin: the main cryptocurrency has risen to over $40,000
For the first time this year, bitcoin has surpassed the $40,000 mark on the back of general enthusiasm for lower interest rates in the US, and traders expect bitcoin funds to be approved soon.
This was reported by Reuters.
On Sunday, December 3, the value of bitcoin reached $40,210, the highest since April 2022. On Monday, at the beginning of the day in Asia, it was stable at $40,011.
“We’ll see if it holds throughout the day, but bitcoin loves breaking through big psychological levels, so this is getting bitcoin bugs excited again and adding momentum,” said Capital.com analyst Kyle Rodda.
Bitcoin has more than doubled in value over the past year as it emerged from the lull of the so-called “cryptocurrency winter” that followed scandals, including the collapse of the FTX exchange last year.
Risky investments and other interest rate-sensitive assets such as gold have also risen strongly over the past few weeks.
Ether, the coin linked to the Ethereum blockchain network, also hit a 1-1/2 year high on Sunday, reaching $2218 and stabilizing at $2197 in Asia on Monday.
Both bitcoin and ether remain well below their record highs of 2021, which exceeded $60 thousand and $4 thousand, respectively.
Kirill Khomyakov, Head of Central and Eastern Europe (CEE) and Central Asia at Binance, shared his forecast and explanation of the situation.
At the current stage of the cryptocurrency market, it is clear that we are experiencing an important historical moment that we have been waiting for since May 2022. Bitcoin has successfully surpassed its previous all-time high (ATH) mark, surpassing $42 thousand. The last time bitcoin traded at this level of value was in April 2022. Amid this growth of the cryptocurrency market leader, its market capitalization has reached an impressive $809.6 billion, according to CoinMarketCap.
According to a representative of Binance, since the beginning of 2023, there has been an impressive 140% growth of bitcoin, which has certainly affected the mood in the cryptocurrency environment. Overall, the market capitalization of the entire cryptocurrency market peaked at $1.54 trillion in 2023. This was partly influenced by the expected approval of the Bitcoin ETF and the likely rate cut by the US Federal Reserve in 2024.
Kirill Khomyakov added that experts estimate the potential of bitcoin at $100 thousand. by 2024, linking this growth to ETF approval. The digital asset community is watching with particular interest the actions of major players such as BlackRock Inc. in anticipation of the launch of the first bitcoin ETFs in the United States.
At the same time, from a technical perspective, the analysis points to the next level of resistance for bitcoin at $42,330. This is assuming that the bullish trend continues, despite the relatively low open interest. Some analysts even predict that by April 2024, bitcoin could reach $60 thousand.
Summarizing the results, the head of Central and Eastern Europe (CEE) and Central Asia at Binance says that current market conditions indicate significant potential for large growth in cryptocurrencies in 2024. As we await the launch of the bitcoin ETF, we are seeing increased interest in the market, which has the potential to take bitcoin and the entire cryptocurrency market to new heights. However, as with all investments, it is recommended to follow the “do your research” rule before investing in cryptocurrencies.
- In November 2022, bitcoin lost 77% of its value amid news of the collapse of one of the world’s largest crypto exchanges. This is 77% less than its value was exactly a year earlier – $67,734 at the close on November 9 and almost $68,992 during trading on November 10, 2021.
