Bitcoin has surged past the $45,000 mark, reaching its highest level since April 2022. The cryptocurrency's price has been steadily climbing in recent months, driven by investor anticipation of two key events: the potential approval of a spot bitcoin ETF by regulators and the upcoming halving event.
On Monday, Bitcoin saw a 5% jump, and it continued to climb on Tuesday, reaching a trading price of $45,565. Investors are eagerly awaiting the Securities and Exchange Commission's decision on whether to approve a spot bitcoin ETF, with the deadline set for January 10. This approval is seen as a significant milestone for the cryptocurrency industry.
The halving event, which will occur in a few months, is also contributing to investor optimism. During this event, the amount of bitcoin rewarded to miners will be halved. Previous halvings have resulted in record-breaking price levels for Bitcoin, and some experts predict that the cryptocurrency could reach $100,000 shortly after this year's halving.
Joe Kelly, CEO of crypto financial services firm Unchained, has suggested that even a conservative estimate of a 250% increase in Bitcoin's price after the halving could push it to $105,000. This demonstrates the potential for significant growth in the cryptocurrency market.
Bitcoin had a strong performance in 2023, gaining over 150%, which also boosted the value of crypto-linked stocks such as MicroStrategy, Marathon Digital, and Coinbase. On Tuesday, these companies saw their shares rise by 8%, 13.4%, and 2.1%, respectively.
Overall, Bitcoin's recent rally and its potential for further growth have attracted the attention of investors. The cryptocurrency's price surge, driven by factors such as the anticipation of a spot bitcoin ETF approval and the upcoming halving event, has resulted in renewed bullishness in the market. However, it remains to be seen how these events will ultimately impact Bitcoin's long-term trajectory.