Bitcoin on Monday broke $40,000 resistance levels following a 2.9% surge in price to $40,867 per coin.
The world’s largest digital currency has now appreciated by 146% in 2023 as more institutional investors continue to increase their investments in the unregulated cryptocurrency space.
Investors are exhibiting growing confidence in the Federal Reserve’s apparent conclusion of rate hikes amid a cooling inflation backdrop.
This shift in sentiment has redirected attention to the anticipated extent of rate cuts in the coming year, prompting a rally across global markets.
The cryptocurrency industry is currently in anticipation as regulatory decisions, particularly regarding applications for the first US spot Bitcoin exchange-traded funds (ETFs), hang in the balance.
Bloomberg Intelligence anticipates the approval of a batch of these ETFs by the Securities & Exchange Commission (SEC) by January.
“Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024,” noted Tony Sycamore, a market analyst at IG Australia Pty.
Technical analysis points to $42,330 as the next significant level to monitor in Bitcoin’s upward trajectory.
Despite recent crackdowns in the industry, including legal actions against figures like Sam Bankman-Fried and Binance, Bitcoin has proven resilient.
Optimists argue that these regulatory measures, alongside the potential approval of ETFs, signify the maturation of the crypto industry and the prospect of a broader investor base.
According to Su Yen Chia, co-founder of the Asia Crypto Alliance, recent enforcement actions “have instilled confidence among investors,” noting that Bitcoin is aligning with momentum in traditional finance as expectations of Fed rate hikes fade.
Bitcoin Hits $63,968 in Wild Crypto Market Rally Fueled by ETF Demand
Bitcoin surged to $63,968 as demand from US exchange-traded funds (ETFs) ignited a fervor among investors and traders alike to propel Bitcoin to its highest level since November 2021.
The heart of this meteoric rise lies in the fundamental economic principle of supply and demand.
With the introduction of new US ETFs dedicated to Bitcoin, the appetite for the digital asset has skyrocketed, outpacing the willingness of long-time holders to part ways with their holdings.
This dynamic imbalance has triggered a cascade of buying pressure, sending shockwaves across the crypto market.
This latest rally adds to Bitcoin’s already impressive performance, with the digital currency having surged over 40% since the advent of the US ETFs earlier in the year.
The influx of approximately $7 billion in net inflows into these funds, spearheaded by industry giants like BlackRock Inc. and Fidelity Investments, signals a seismic shift in mainstream acceptance of cryptocurrencies as legitimate investment vehicles.
Moreover, anticipation surrounding Bitcoin’s upcoming halving event, which will reduce its supply growth, has further fueled optimism among investors.
While debates persist regarding the event’s true impact on price dynamics, industry experts remain bullish on Bitcoin’s trajectory.
As Bitcoin eclipses previous highs and charts a course towards uncharted territory, observers caution against the inherent volatility and potential for sharp corrections.
Nevertheless, the allure of Bitcoin as a lucrative investment avenue continues to captivate the imagination of investors worldwide, ushering in a new era of financial innovation and speculation in the digital age.
Bitcoin Hits $57,000, Driven by Institutional Investments and ETF Surge
Bitcoin surged past the $57,000 price level to reach levels last seen in late 2021.
This rally has been largely fueled by increased institutional investments and a surge in demand for Bitcoin exchange-traded funds (ETFs).
Bitcoin’s price skyrocketed by as much as 4.4% to peak at $57,039 before slightly retreating to $56,085 on Tuesday as of 6 a.m. Nigerian time.
This surge represents a 32% increase since the beginning of the year, extending a prolonged rally that has also buoyed other cryptocurrencies like Ether and Dogecoin.
A significant catalyst behind this surge has been the influx of approximately $6.1 billion into a series of Bitcoin ETFs that commenced trading in the United States on January 11.
These ETFs have signaled a broadening demand for Bitcoin beyond the traditional circle of digital asset enthusiasts.
MicroStrategy Inc., a prominent enterprise software firm known for its bullish stance on Bitcoin, announced that it had acquired an additional 3,000 Bitcoins this month, bringing its total Bitcoin holdings to around $10 billion.
This move underscores the growing trend of corporations adopting Bitcoin as part of their treasury reserve strategies.
The overall value of digital assets now stands at approximately $2.2 trillion, as per CoinGecko data, a significant recovery from the lows experienced during the bear market of 2022.
Despite concerns over rising US Treasury yields, Bitcoin’s bullish momentum remains robust, buoyed by favorable sentiment and increasing institutional adoption.
The surge in Bitcoin’s price has also propelled shares of crypto-related companies in the US, including MicroStrategy, Coinbase Global Inc., and Marathon Digital Holdings Inc., which all saw notable gains on Monday.
This positive sentiment has also spilled over into Asian stocks related to digital assets, indicating a broader global appetite for cryptocurrencies amidst a shifting financial landscape.
Bitcoin Giant MicroStrategy Hit by X Account Hack, Users Lose Funds in Phishing Scheme
MicroStrategy Inc., renowned for its significant Bitcoin holdings, faced a security breach when its X account fell victim to a phishing scheme, leading unsuspecting users to lose funds.
The incident unfolded on Monday in Asia as an unidentified attacker posted a now-deleted message on the company’s X page, enticing users with a purported promotion for a new coin supposedly backed by MicroStrategy.
Upon clicking the link, users were redirected to a fraudulent website, resulting in approximately $440,000 being stolen from individuals who were deceived by the scam.
Crypto security analysts, including firms like PeckShield and independent investigators like ZachXBT, promptly raised alarms about the compromise of MicroStrategy’s X account.
MicroStrategy, headquartered in Tysons Corner, Virginia, did not immediately respond to inquiries regarding the security breach.
The company’s co-founder, Michael Saylor, has been a vocal advocate for Bitcoin, leading the firm to allocate a substantial portion of its cash reserves into the digital asset, now valued at roughly $10 billion.
The incident underscores the persistent challenges faced by cryptocurrency platforms in safeguarding user accounts against sophisticated cyber threats.
As investigations continue, the broader crypto community remains vigilant against similar phishing exploits, emphasizing the importance of robust security measures in the digital asset ecosystem.
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