- Bitcoin Surges to $40,897 on Monday Morning in Asia, Reveals Coin Metrics Data.
- Bitcoin Surpasses $40,000 for the First Time This Year Amid Expectations of ETF Approval and Speculation on U.S. Interest Rate Reductions.
- Bitcoin has surged by over 145% since the beginning of the year.
Bitcoin confidently surged beyond the $40,000 milestone this week, marking its first ascent to this level in the current year. The remarkable 4% surge on Monday propelled the world's largest cryptocurrency to a 19-month peak, reaching an impressive $41,520 as of 12:30 am ET, as per Coin Metrics data. This significant breakthrough, not witnessed since May 2022, showcases Bitcoin's resilience and dominance, with an outstanding year-to-date increase of over 145%.
Amid recent market upheavals, such as the FTX exchange collapse in November, Bitcoin has demonstrated remarkable resilience. Despite challenges, the cryptocurrency market received a confidence boost following the conviction of FTX founder Bankman-Fried last month on seven criminal charges related to the collapse of his crypto empire.
Antoni Trenchev, the co-founder of digital asset company Nexo, anticipates that with the $40,000 milestone now reclaimed after almost 19 months, the next crucial thresholds at $48,000 and $52,000 are in focus.
Reports from CNBC revealed that the U.S. Securities and Exchange Commission (SEC) officials engaged in discussions with key industry players, including Grayscale, BlackRock, and Nasdaq. The SEC's recent memo indicated a meeting with Grayscale regarding the potential conversion of the Grayscale Bitcoin Trust into an ETF. This development, coupled with Grayscale's successful legal challenge against the SEC's previous decision, has instilled confidence in the market regarding the eventual approval of a bitcoin ETF, thereby contributing to the cryptocurrency's upward trajectory.
While Federal Reserve Chairman Jerome Powell, in a fireside chat on December 1, emphasized the current stance of maintaining restrictive policies until solid signs of inflation returning to 2%, he also hinted at the possibility of a halt in interest rate hikes. Powell's cautious optimism, coupled with the acknowledgement of potential economic slowdown, creates an environment where Bitcoin's future trajectory could be influenced by factors such as interest rate decisions and regulatory developments. The market eagerly awaits the evolution of these dynamics as Bitcoin continues its upward journey, eyeing potential milestones beyond $50,000.