Bitcoin was close to hitting the $44,000 mark, riding its longest winning streak since May. This surge, rising approximately 16% over six days, brought it to $44,491 before a slight pullback. Its strong 2023 rebound marks a whopping 163% rise from the previous year’s crypto downturn.
Since mid-September, Bitcoin has surged nearly 80%, swiftly surpassing the $30,000 and $40,000 levels. Alongside speculation of potential Federal Reserve interest rate cuts, the rise has been linked to expectations of the US greenlighting its first spot Bitcoin exchange-traded funds. BlackRock’s filing in June for such a product hinted at the growing allure of crypto as an asset class.
Analysts note the high volatility and rapid surge in Bitcoin, questioning whether the ETF anticipation is fully reflected in the price. This ascent underscores crypto’s sensitivity to shifts in Fed policy compared to other assets.
Despite concerns about its rapid rise, Bitcoin’s momentum remains strong, outshining worries of overstretching. Other cryptocurrencies like Avalanche and Dogecoin have also seen upward trajectories.
Globally, Bitcoin’s bullish sentiment is evident, with the “kimchi premium” resurfacing in South Korea and positive developments in countries like Abu Dhabi and El Salvador. Additionally, Bitcoin’s upcoming halving, reducing miner rewards by half, adds to its current positive outlook.
Zach Pandl, from Grayscale Investments LLC, mentioned how various factors are aligning favorably for Bitcoin. As of the moment, Bitcoin trades at $44,004, having previously peaked near $69,000 in November 2021.
