Bitcoin Achieved Its Previous All-Time High, Surpassing $68,000 (Approximately Rs. 56.6 Lakh), in November 2021.
For the first time in nineteen months, the value of Bitcoin exceeded the crucial mark of $40,000 (roughly Rs. 33.7 lakh) in terms of its pricing on Monday, December 4. The oldest cryptocurrency, that created its last all-time high of over $68,000 (roughly Rs. 56.6 lakh) in November 2021, had traded within the range of $26,000 (roughly Rs. 21.6 lakh) and $27,500 (roughly Rs. 22.9 lakh) for most months since May 2022.
Bitcoin finally launched into the upward curve earlier this October, because CoinTelegraph mistakenly ran a false story claiming that a spot BTC ETF was approved in the US – triggering immediate inflows into the crypto asset from investors. As of October 10, BTC was trading at $28,175 (roughly Rs. 23.4 lakh).
Within 24 hours, short positions on Bitcoin contracts worth $54 million (roughly Rs. 450 crore) were liquidated, significantly weakening the bearish forces. Members from the crypto industry, for now, seem elated at this bullish sentiment that currently envelops Bitcoin against market volatility affecting smaller altcoins.
“Bitcoin has experienced a substantial surge which represents a year-to-date peak for Bitcoin, boasting a remarkable 140 percent rise since the beginning of the year. The current uptrend is largely attributed to growing expectations that the SEC might approve a spot Bitcoin ETF in January. At the time of writing, Bitcoin is trading at $40,580 (roughly Rs. 33.8 lakh),” the trade desk at Zebpay told Gadgets360.
Asset management firm BlackRock was the first big company to file seeking permission to launch a spot BTC ETF in October. BlackRock’s iShares ETF filing initiated a wave of similar submissions by other asset managers like WisdomTree, Invesco, and Fidelity, promising potential investment inflow.
The reason why ETFs (exchange traded funds) make for a lucrative investment tool for crypto outsiders is because they let investors to invest in BTC via traditional market exchanges rather than being limited to cryptocurrency exchanges.
As of now, the US Securities and Exchange Commission (SEC) has not provided a verdict on ETF filings related to BTC and ETH, citing potential risks to investor financial safety. It is anticipated that the SEC will offer more clarity on this matter by January 2024.
Shivam Thakral, CEO of BuyUcoin, suggested another potential factor contributing to the recent spike in BTC value. He noted, “The US Fed is expected to cut the interest rate in 2024, and that may boost liquidity in the market. We may be witnessing early signs of the same. The US Committee on Financial Services calling a December 8 hearing on digital assets may lead to a strong regulatory framework focusing on investor protection, which could prove highly beneficial for the broader digital asset market.”
Market analysts point out that due to the potential for a recession in the US economy, fund managers are predicting an 80 percent consensus level for an interest rate reduction in 2024, the highest consensus level ever recorded.
Ryan Lee, Chief Analyst of Bitget Research, mentioned, “The crypto market has already factored in this positive news. The market may undergo an overall accelerated upward revision. Furthermore, a new asset category within the Bitcoin ecosystem, ORDI, surged over the weekend, indicating a strong speculative sentiment in the market.”
With expectations of an upcoming rate cut and growing confidence in Bitcoin ETF applications, traders are actively placing top-side options, betting on Bitcoin’s potential ascent to $45,000 (approximately Rs. 37.4 lakh) by March 2024.