Bitcoin Surges Above $45,000 on ETF Optimism, Eyes 21-Month High

2 Jan 2024 , 01:09 AM

Bitcoin surged above $45,000 on Tuesday, marking its highest level since April 2022, propelled by optimism surrounding potential approval of exchange-traded spot bitcoin funds.

The cryptocurrency reached a 21-month peak at $45,488, reflecting a remarkable 154% gain in the previous year, its strongest performance since 2020. Presently, it is up by 2.6% at $45,344, though still a considerable distance from its record high of $69,000 in November 2021.

Growing expectations of interest rate cuts by major central banks in the coming year have positively impacted cryptocurrencies, dispelling the market’s previous concerns following the collapse of FTX and other crypto-business failures in 2022.

Despite regulatory challenges in the past, recent signals suggest that regulators may approve some of the 13 proposed spot bitcoin ETFs, with expectations for a decision likely in early January.

Ether, the cryptocurrency linked to the Ethereum blockchain network, witnessed a 1% increase, reaching $2,376 on Tuesday.

Investor attention is focused on the potential approval of a spot bitcoin ETF by the U.S. Securities and Exchange Commission, which could significantly expand bitcoin market accessibility.

The SEC has previously rejected several applications for spot bitcoin ETFs, citing concerns about market vulnerability to manipulation in the cryptocurrency space.

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