Bitcoin Surges Above $45,000 in New Year Rally

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Bitcoin made a strong start to the New Year by surpassing $45,000 on Tuesday, marking its highest point since April 2022.

The surge is attributed to optimism surrounding the potential approval of exchange-traded spot bitcoin funds. Last year, Bitcoin recorded a remarkable 156% gain, representing its most robust annual performance since 2020.

Despite a 2.5% increase to $45,318, it remains notably below the all-time high of $69,000 in November 2021.The cryptocurrency’s upward trajectory is fueled not only by ETF prospects but also by growing expectations of major central banks cutting interest rates in the coming year.

This positive sentiment has helped lift the cloud that loomed over crypto markets following the collapses of FTX and other crypto businesses in 2022.Jupiter Zheng, a partner of liquid funds at HashKey Capital, anticipates significant growth in the crypto market in the current year.

Factors influencing this growth include increased investment from spot ETFs, the upcoming Bitcoin halving, and a more accommodative monetary policy both in the United States and globally.

Source: Reuters

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