Bitcoin broke the $40 mark for the first time this year. The cryptocurrency is rallying amid enthusiasm for lower interest rates in the U.S., as well as traders anticipating the earliest approval of bitcoin exchange-traded funds. About this write Bloomberg.
The token rose as much as 5,1% to $41, and as of the morning of Dec. 746 in London, it was just short of that mark, jumping 4% in 2023. The last time Bitcoin was at these levels was in April 152, before the collapse of the TerraUSD stablecoin, which wiped out $2022 trillion in digital assets.
Smaller tokens such as Ether and Dogecoin also rose. The ratio of the top 100 cryptocurrencies added more than 4%.
"Investors are increasingly convinced that the Federal Reserve is done raising interest rates as inflation cools, focusing on the likely scale of the reduction in core borrowing costs next year.", the message says.
Bitcoin has more than doubled in a year as it shakes off the depressed state of the so-called "cryptozyme" that followed scandals, including the crash of the FTX exchange last year.
Riskier investments and other interest-rate-sensitive assets, such as gold, have also rallied strongly in the past few weeks as markets bet the U.S. Federal Reserve has stopped raising rates and will start cutting them in early 2023.
In addition, the crypto industry is also awaiting the results of applications from companies such as BlackRock to create the first spot cryptocurrency ETFs — exchange-traded funds whose price will be tied to bitcoin.
"Bitcoin Continues to Be Buoyed by Optimism About SEC Approval of ETFs and Fed Rate Cut in 2024" — wrote Tony Sycamore, market analyst at IG Australia Pty., in a note.
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