Bitcoin surged to kick off 2024, topping $45,000 for the first time since April 2022 as investor confidence in a potential bitcoin ETF approval continued to build.
Thank you for reading this post, don't forget to subscribe!The world’s largest cryptocurrency hit an intra-day high of $45,913.30 early Tuesday morning, according to Coin Metrics. That was its highest level since April 5, 2022 and the first time it has traded above the $45,000 mark since then. It was last higher by 4%, trading at $45,599.33.
The move comes amid growing excitement among traders that the U.S. could approve the first bitcoin exchange traded fund (ETF). This would allow investors to buy a product that tracks the price of bitcoin without having to own the cryptocurrency directly, likely appealing to larger institutional investors.
On Friday BlackRock and other potential issuers updated the registration forms for their proposed bitcoin ETFs, including names of authorized participants. Investors are reading that extra detail as evidence that a decision by the SEC is coming soon. Many industry experts expect the funds to be approved in January.
The continued price gains for bitcoin come off the back of bumper 2023, when the price of the digital coin rose 157% — and many expect the bold rises to continue.
In 2024, bitcoin will also undergo the halving, a technical event in which rewards offered to miners of the cryptocurrency are slashed in half. This reduces the supply of bitcoin onto the market. Previous halving events have often preceded steep price rises.
Other cryptocurrencies also rallied overnight into Tuesday. Ether traded at around $2,387, up around 4%, while Solana surged 7% to around $113.
—CNBC’s Jesse Pound contributed to this report.
