January 3, 2024

Bitcoin Rings in 2024 with a Glance at $46,000

All eyes in the crypto sphere are fixed on the SEC as optimistic traders eagerly await the regulatory verdict on a bitcoin spot ETF.

On the second day of the new year, bitcoin touched $46,000, revisiting a level not seen since April 2022. This echoes the volatile trend observed in January of that year when the leading cryptocurrency's price fluctuated above this threshold multiple times, accompanied by occasional dips to as low as $36,000.

The last instance of bitcoin at $46,000 was recorded on April 5, 2022, following which it experienced a significant drop to $15,473 on November 21.

BTC/USD (weekly chart)

As of the current moment, BTC is hovering around $45,000, marking an increase of over 170% compared to the same period last year and a rise of more than 12% in the last 30 days. Bitcoin commenced 2023 with a value below $17,000 per coin.

This year, the prolonged anticipation of SEC approval for a bitcoin spot ETF seems to be a driving force behind much of the upward movement. Despite numerous deadlines passing without formal action on pending applications, could 2024 finally be the year for approval? And what impact might this have on the price of bitcoin?

While round numbers like $45,000 may lack intrinsic significance, they often serve as psychological barriers for investors. Achieving such milestones tends to boost confidence, leading to increased trading activity and potentially setting off a positive feedback loop — at least, that's the hope of bitcoin holders.

In the broader context, bitcoin is inching closer to surpassing its 2022 high when it began the year just below $50,000. Although it maintained levels above $40,000 for a few months, a sharp decline followed the collapse of the algorithmic stablecoin TerraUSD, triggering a wave of liquidations and bankruptcies.

As the world's largest and oldest cryptocurrency continues its rally, its market capitalization swells. With a market cap of $885 billion, bitcoin surpasses Elon Musk's Tesla at $790 billion, as well as Warren Buffett's Berkshire Hathaway Inc. and Meta Platforms (formerly known as Facebook).

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