Bitcoin (BTC) surpassed $42,000, reaching levels not seen since April 2022, prior to the Terra crash. Ether (ETH) also climbed beyond $2,200. Bitcoin recently flirted with the $40,000 mark and broke through, trading above $41,600 with a 24-hour gain of about 6%. Ether was at approximately $2,240, reflecting a similar percentage increase. This upward movement had a positive impact on crypto stocks, with Coinbase (COIN) and Microstrategy (MSTR) rising almost 9% in pre-market trading. Crypto miners like Marathon Digital (MARA) and Riot (RIOT) experienced over 10% increases. While the top 10 cryptocurrencies saw modest gains, BNB coin (BNB) associated with Binance remained largely unchanged. The resurgence in Bitcoin’s price, dropping below $40,000 in April 2022, has been attributed to optimistic remarks from U.S. central bankers and anticipation of a potential approval for a spot bitcoin exchange-traded fund (ETF). Similarly, Ether had not surpassed $2,200 since May 2022 but achieved this milestone amid recent market dynamics.
Bitcoin surged above $40,000 as gold reached a record high, surpassing $2,100 per ounce in early Asian trading, driven by dovish remarks from Federal Reserve Chairman Jerome Powell. Lucy Hu, Senior Analyst at Metalpha, noted the market’s anticipation of a rate cut and growing bullishness on Bitcoin ETF applications, signaling an official bull run. Powell’s recent comments on interest rates being in restrictive territory reinforced the belief that the tightening cycle has peaked, influencing downward pressure on Treasury yields. Crypto, including Bitcoin, has been rising alongside gold due to lower yields. Traders are optimistic, loading up on topside option plays, aiming for Bitcoin to reach $45,000 by March 2024. However, upcoming U.S. economic data, such as ISM services PMI and non-farm payrolls for December, could impact Bitcoin’s trajectory, especially if strong NFP figures lead to a reassessment of Fed rate cut expectations for 2024, potentially slowing BTC’s ascent.
