Bitcoin Surges to $39,000, Path Cleared for $40,000

Bitcoin, the largest cryptocurrency by market capitalization, reached its highest point this year following remarks by Federal Reserve Chair Jerome Powell that hinted at unchanged interest rates.

The digital asset extended its rally on Friday, hitting $39,000 on the Coinbase crypto exchange.

This surge marks Bitcoin’s highest value since May 2022, just before the cryptocurrency sector faced a downturn due to the collapse of the Terra ecosystem.

As 2023 nears its end, speculators are eyeing the possibility of Bitcoin breaching the $40,000 mark, given its over 100% increase in value this year.

Bitcoin’s 133% surge in 2023 has outpaced gains in many traditional sectors as investors gravitate towards riskier assets.

There is optimism within the cryptocurrency community regarding the possible approval of the first exchange-traded fund linked to Bitcoin by the U.S. Securities and Exchange Commission, driving up prices even further.

With on-chain analytics firm suggesting that Bitcoin’s path has been cleared for a $40,000 price, the digital currency almost touched $39,000 on the news that U.S. Fed interest rates might not change until at least 2024.

Furthermore, the increased focus on Bitcoin rather than altcoins has contributed to a rise in its social dominance, signaling a potential upward trend in prices.

At the time of writing, Bitcoin was up 0.78% in the last 24 hours, reaching intraday highs of $38,848 in Saturday’s trading session.

This surge in Bitcoin’s value is a significant development in the cryptocurrency market, with investors and speculators closely monitoring its trajectory as it nears the $40,000 mark.