The cryptocurrency bitcoin continued to strengthen, briefly surpassing the $44,000 mark late Tuesday night before erasing some of its gains. Contributing to the rise, among other factors, is the growing belief that the Fed will soon start cutting interest rates.
Surpassing $ 40,000
Shortly after 09:00 CET, bitcoin gained 5.3 percent in the past 24 hours and hovered around $43,806, according to specialist server CoinDesk. In Asian trading, it climbed to above $44,445. The price of the second-largest cryptocurrency, ether, showed a three percent rise to around $2,270 at the same time.
Since the beginning of the year, bitcoin has gained more than 160 percent. However, it is still noticeably weaker than the peak near $69,000 in late 2021.
The impact of expected developments
Much of bitcoin’s rise is driven by expectations that the U.S. Securities and Exchange Commission will approve bitcoin ETFs, opening the way to a broader investor base. Companies such as BlackRock and Fidelity Investments, among others, are awaiting the results of their applications. Some analysts expect the applications to be approved in January.
“Is the ETF story well and realistically priced?” asks analyst Tony Sycamore of IG Australia. The big swings and rapid upward movement of bitcoin, on the other hand, is a reminder that the crypto asset sector is more sensitive to Fed policy than other asset classes, according to the analyst.
Source Czech Press Office
