At around 8:30 a.m., the world's largest cryptocurrency jumped to nearly $40,800 per coin, its highest level since late April 2022.
Early this morning, the world's largest cryptocurrency skyrocketed to $40,000 per coin. After only about 20 minutes, Bitcoin accumulated another $100 and then quickly retreated. But then, this currency jumped to more than $40,200. At around 8:30, the market price approached the $40,800 per unit area, up nearly $1,000 compared to yesterday's closing price.
Bitcoin is now worth more than double what it was at the start of the year. This is also the highest price since late April 2022, or nearly 20 months.
Other coins followed suit. Ethereum was trading near $2,210, up more than 2%. Most of the other 10 top cryptocurrencies by market capitalization also saw gains.
The price of the world's oldest and largest cryptocurrency fell below $40,000 in April 2022, but has recovered in recent months, buoyed largely by dovish comments from U.S. regulators on cryptocurrencies and hopes that a spot Bitcoin exchange-traded fund (ETF) could soon be launched.
In addition, investors also believe that the US Federal Reserve (Fed) has completed its interest rate hike roadmap and will start cutting rates early next year. This reason is also the driving force for large risk investment channels and other interest rate-sensitive assets, such as gold, to increase sharply in the past few weeks.
In addition, the more "mature" cryptocurrency market is also a factor that helps investors be optimistic. David Marcus - CEO of online payment platform Lightspark - told CNBC that after going through the speculative phase, the cryptocurrency market can focus on technology and practical applications, "instead of just being a giant digital casino for people to trade".
The bullish scenario in 2024 is also being discussed with great enthusiasm as Bitcoin halving, an event that cuts miner rewards by 50% and occurs every four years, is expected to occur in May next year. This helps limit the supply of Bitcoin and is often a catalyst for a new price increase.
Standard Chartered last week reiterated its April forecast that Bitcoin will hit $100,000 by the end of 2024. The bank said the scenario would be fueled by the approval of multiple ETFs. According to the bank, several spot ETFs will be approved in the first quarter of next year for both Bitcoin and Ethereum, paving the way for institutional investment.
Xiao Gu (according to CoinDesk , Reuters , CNBC )
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