Bitcoin hit its highest value this year as investors braced for insights from Federal Reserve Chair Jerome Powell, signaling potential shifts in US interest rates. The surge lifted Bitcoin by 2.87%, reaching $38,834, and other digital assets like Ether and Solana also rose over 2%. This marks Bitcoin’s peak since May 5 last year, preceding the TerraUSD ecosystem collapse that triggered a downward spiral in asset prices.
European stocks climbed, the dollar weakened, and anticipation brewed ahead of Powell’s speech at Spelman College. With November’s cross-asset gains in focus, traders eyed potential continued momentum.
Markus Thielen, Matrixport’s head of research, foresees a favorable macro environment propelling crypto, with expectations of declining inflation prompting possible interest rate cuts. He anticipates this monetary support combined with geopolitical factors to fuel Bitcoin’s ascent in 2024.
Pre-market trading saw cryptocurrency-related stocks surge, notably Coinbase Global Inc rising 3.5% and Marathon Digital Holdings climbing 4%.
Bitcoin’s year-to-date surge of over 133% has outpaced traditional sectors, signaling investors’ preference for riskier assets.
Optimism lingers regarding the potential approval of the US’s maiden Bitcoin-tied exchange-traded fund by the Securities and Exchange Commission. The recent settlement between US authorities and Binance Holdings Ltd. has further stabilized market sentiments, according to Deribit’s Luuk Strijers.
