Bitcoin Rockets Past $45,000 on New Year’s Day, Reaching Highest Level Since April 2022
By James Pebenito • January 2, 2024
Bitcoin Rockets Past $45,000 on New Year’s Day, Reaching Highest Level Since April 2022
With a strong start to the year, Bitcoin (BTC) broke beyond $45,000 and rose to its highest level since early April 2022. On the first day of 2024, the price of the most popular cryptocurrency increased by almost 6%, indicating a notable uptrend.
The expectation surrounding the possible licensing of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has contributed to the recent bullish momentum in the cryptocurrency. There were hints over the weekend, including one from Reuters, that the SEC would contact ETF sponsors as early as Tuesday to inform them of their applications’ approval.
The recent price spike in Bitcoin has been largely caused by the expectation that regulators will approve ETFs, as investors and market players look forward to the potential inflow of institutional capital that these products could provide to the cryptocurrency space.
The Price and Market Movement of Bitcoin
According to the most recent trading statistics, the price of Bitcoin is $45,135, which represents a noteworthy 6.35% increase. In the last day, Bitcoin has increased significantly by 5.6%. Not only is Bitcoin seeing strong momentum, but other significant cryptocurrencies are also rising. Avalanche (AVAX) and Solana (SOL) have both increased by 9%, and ether (ETH) is up 4%. These moves have added to the overall optimism in the cryptocurrency market.
Consequences for the Crypto Industry
The positive start to the year for Bitcoin sets a positive tone for the entire cryptocurrency sector. The SEC’s possible approval of spot Bitcoin ETFs is a regulatory move that investors and analysts will be eagerly watching, as it is anticipated to have a big impact on the cryptocurrency market in 2024.
The trajectory of digital assets will be significantly shaped by institutional adoption, regulatory choices, and larger macroeconomic trends as the crypto market moves into the new year. The first day of 2024 saw positive price movement, which suggests that cryptocurrency investors have become more optimistic and enthusiastic again.
