Bitcoin's upward momentum persists, with Tuesday's gains propelling its year-to-date surge beyond 160%. The main catalyst for Bitcoin's climb is the prevailing optimism surrounding the potential approval of a spot Bitcoin ETF in the U.S. Bitcoin's positive trajectory is marked by its significant gains throughout the year, underscoring growing interest and confidence in the cryptocurrency.
Bitcoin is continuing its upward trend, surging past $44,000 for the first time since April 2022. Tuesday's gains, exceeding 4%, propelled Bitcoin to $43,794.99, with a peak at $44,903.45. This marks a more than 160% increase for the year, while Ether also rose by 1.6% to $2,263.76, boasting an 88% gain in 2023.In recent weeks, Bitcoin has consistently achieved new highs, surpassing $40,000 for the first time since April 2022. The climb, starting in the summer, gained momentum as optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the U.S. intensified. Reports of meetings between potential ETF issuers and the U.S. Securities and Exchange Commission, coupled with feedback implementation, have further fueled investor confidence.There's a prevailing belief in a greenlit Bitcoin ETF in early 2024, considering SEC deadlines aligned with issuers' application filing dates. The end-of-November settlement between Binance and the U.S. Department of Justice is seen as a significant milestone in the post-FTX cleanup of the crypto industry. Additionally, investors are anticipating the Bitcoin halving scheduled for spring 2024.Bitcoin surged on Monday, briefly exceeding $42,000 and marking a 20-month high. This momentum was driven by expectations of a U.S. interest rate cut and speculation that regulators would approve exchange-traded spot bitcoin funds. Rebounding from last year's crypto-market setbacks, Bitcoin reached $42,162, up 8.27% at $42,005 by 20:00 GMT.The positive trend in Bitcoin impacted related companies and U.S.-listed exchange-traded funds (ETFs). Coinbase rose by 7%, Microstrategy gained 6.3%, and bitcoin miners like Riot Platforms, Marathon Digital, and CleanSpark saw increases ranging from 7% to 13%. Microstrategy also revealed a $593 million bitcoin purchase in November.The ProShares Bitcoin Strategy ETF, tracking bitcoin futures, rose 7.5%, while the ProShares Short Bitcoin Strategy ETF, allowing bets on a bitcoin futures decline, dropped 7.5%. The anticipation of U.S. regulators approving a spot bitcoin ETF contributed to Bitcoin's surge, potentially broadening market access. Positive factors included optimism about regulatory approval, expectations of central banks easing rate hikes amid abating inflation, and a rise in institutional engagement.Bitcoin's remarkable 150% gain in 2023 is attributed to a confluence of factors, according to Luuk Strijers, CCO of Deribit. The prospect of a spot bitcoin ETF approval, coupled with the potential reduction of interest rates, made riskier assets appealing. Reports in October regarding the SEC not appealing a court ruling rejecting a spot bitcoin ETF application fueled bets on eventual approval.Market speculation suggests the SEC could approve multiple spot bitcoin ETFs as early as January, potentially attracting billions in capital from traditional finance investors. Additionally, the resolution of a U.S. criminal probe into Binance, the world's largest crypto exchange, contributed to investor confidence.Overall, Bitcoin's recent ascent reflects a combination of regulatory optimism, institutional engagement, and favorable market conditions, driving positive sentiment and market participation.
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