According to Khac Hieu
Investing.com – for the first time the currency surpassed the $40,000 mark since May 2022 thanks to expectations that the US Federal Reserve (Fed) will soon cut interest rates and the ability to attract more investors when spot ETFs are delivered approval, according to Bloomberg. Data on CoinDesk shows that this cryptocurrency surpassed the $40,000 mark for the first time at 5:30 a.m. on December 4 (Vietnam time). At 7:05 am, bitcoin was trading at 40,018 USD, up 1.42% compared to 24 hours ago. Less than three days earlier, bitcoin also surpassed the $39,000 mark.
The last time bitcoin was at $40,000 was before stablecoin TerraUSD and the Luna ecosystem collapsed, leading to a series of events in the cryptocurrency market. Since the beginning of the year, bitcoin has recovered 142%.
In addition to bitcoin, Ethereum (), the second largest cryptocurrency, has also surpassed the $2,200 mark for the first time since May 2022. At 7:05 a.m. on December 4, this currency was trading at a price of 2,194 USD.
The recovery of bitcoin and many other financial assets comes from investors increasingly confident that the Fed has completed its campaign to raise interest rates as inflation cools. The market expects the US central bank to start cutting interest rates next year.
In addition, the cryptocurrency industry is also waiting for the results of applications to open spot bitcoin ETFs from giants in the financial industry such as BlackRock, Fidelity or Invesco. Bloomberg Intelligence expects the US Securities and Exchange Commission (SEC) to approve a bitcoin ETF in January 2024.
“Bitcoin continues to be supported by optimism surrounding the possibility of the SEC approving a spot ETF and the Fed cutting interest rates in 2024,” said Tony Sycanmore, market analyst at IG Australia. He said technical patterns point to $42,330 as the next key milestone to watch.
Bitcoin has also grown despite regulatory pressures from governments around the world, including the US. The founder of the FTX exchange, Mr. Sam Bankman-Fried, is facing up to 115 years in prison due to his actions. Mr. Changpeng Zhao, former CEO of Binance, resigned and the exchange was also forced to pay a record sum of $4.3 billion to settle investigations by the US government.
However, optimists argue that efforts to limit suspicious activity by many governments globally and the explosion of applications to open spot ETFs signal the cryptocurrency industry has matured. and have the opportunity to reach more investors.
In addition, one of the other factors supporting market sentiment is the upcoming halving event (halving the reward for bitcoin miners) in 2024. The halving event will further tighten the supply of bitcoin and push this money up. After each halving, the price of bitcoin reaches a new peak.