Bitcoin Surges Past $40,000 Amidst Growing Momentum
Bitcoin Breaks $40,000 for the First Time in 2023
Bitcoin has broken above $40,000 for the first time this year, riding a wave of momentum due to broad enthusiasm about potential U.S. interest rate cuts. Traders are also anticipating the imminent approval of U.S. stock market-traded bitcoin funds, fueling the surge in the world’s biggest cryptocurrency.
Bitcoin Hits Highest Point Since April 2022
In Sunday trade, Bitcoin hit as high as $40,210, its highest level since April 2022. As of Monday, it maintained stability at $40,011 in thin trade in the early hours of the Asia day.
Analyst’s Perspective
Capital.com analyst Kyle Rodda commented, “We’ll see if it sticks throughout the day, but bitcoin loves a break of big psychological levels, so it excites the bit-bugs again and adds to this momentum.”
Bitcoin’s Remarkable Year
For the year, bitcoin has more than doubled, emerging from the doldrums of the so-called “crypto winter” that followed scandals including the collapse of exchange FTX last year.
Market Speculation and Anticipation
Riskier investments and other interest-rate sensitive assets, such as gold, have also rallied hard over the last few weeks as markets wager that the U.S. Federal Reserve has finished hiking rates and will start cutting early in 2023. Reports in October about the potential approval of U.S.-stockmarket traded bitcoin funds have also driven bets, indicating that an eventual approval is nigh.
Impact on Ether and Other Cryptocurrencies
Ether, the coin linked to the blockchain network, also made a 1-1/2 year high on Sunday, hitting $2,218 and steadying at $2,197 in Asia on Monday. Both bitcoin and ether remain well below their 2021 record highs that were above $60,000 and $4,000, respectively.
