The world’s largest cryptocurrency, bitcoin, rang in the New Year with a boom on Tuesday, rising above $45,000 for the first time since April 2022 on optimism about the possible approval of exchange-traded spot bitcoin funds.
Bitcoin gained 156% last year, marking its best year performance since 2020, and hit a 21-month high of $45,532. Even though the price has increased by 3.5% to $45,727, as reported by Reuters, it is still far below the record high of $69,000 that it achieved in November 2021.
Tuesday saw a 2.6% growth in ether, the currency linked to the Ethereum blockchain, reaching $2,414, following a 91% climb in 2023.
In US premarket trading, cryptocurrency stocks—which closely track the price of bitcoin—soared following their steep losses in the final trading days of 2022. Riot Platforms, CleanSpark, and Marathon Digital all experienced increases ranging from 11.3% to 14.8%.
The US cryptocurrency exchange Coinbase had a 6.3% increase, and the software provider and bitcoin investor MicroStrategy saw a 9.4% increase.
Investors’ primary concern has been whether the US securities regulator will soon approve a spot bitcoin exchange-traded fund (ETF), which would draw billions of dollars in capital and allow millions more consumers to access the market.
Due to worries about market manipulation, the US Securities and Exchange Commission has rejected numerous proposals in recent years to launch spot bitcoin exchange-traded funds (ETFs).
But in recent months, there have been increasing signs that regulators are prepared to approve some, if not all, of the 13 scheduled exchange-traded funds (ETFs) for spot bitcoin. Early January is when a decision is expected to be made.
