Bitcoin (BTC) continued its impressive 2023 rally on Monday, surging above the $41,000 mark for the first time in 18 months. The flagship cryptocurrency’s price has increased almost 19% in the past 30 days, propelled by growing convictions that the US regulators will soon approve a spot Bitcoin exchange-traded fund (ETF) and expectations of possible rate cuts in 2024. It recently crossed the $41,000 threshold, a level not seen since April 2022.
Bitcoin Touches 18-Month High on ETF Hype
It’s been a stellar couple of weeks for Bitcoin. The world’s biggest cryptocurrency continues to trend upward rapidly, crossing the $41,000 mark for the first time since April 2022.
Over the past 24 hours, BTC’s price went up by nearly $2,000, or 4.2%, to $41,682. On a monthly basis, the cryptocurrency surged approximately 19%, adding over $135 billion to its market cap.
The latest upswing was driven by growing expectations that US regulators will soon greenlight a spot Bitcoin ETF. The Securities and Exchange Commission (SEC) is set to reveal its decision on this matter by January 10, and approval would allow the first-ever spot Bitcoin ETF to be launched in the US. The regulator has rejected such applications, but experts predict a different verdict this time due to a shifting regulatory mood.
In addition, the rally in Bitcoin and the broader crypto market has also been boosted by increasing investors’ bets that the Fed reached the end of its rate-hiking campaign and may begin cutting rates sometime next year. Fueled by easing macroeconomic challenges, such expectations increased investors’ appetite for riskier assets.
Crypto Industry Executives See Bitcoin Crossing $100,000 in 2024
Since the start of this year, Bitcoin surged more than 150%, leading to speculations among industry executives that the largest cryptocurrency might attain new peaks by the close of 2024.
“It feels that [2023]was a year to get ready for the bull run that is yet to come. But the sentiment is very hopeful for [2024] and 25.”
– said Pascal Gauthier, CEO of Ledger.
One of the boldest calls out there is one by Standard Chartered, with the bank reiterating its previous price call that Bitcoin would surge to as high as $100,000 by the end of 2024. That price target is 140% higher than BTC’s current price, and the lender believes numerous ETF approvals will drive this unprecedented rally.
Crypto financial services firm Matrixport was even more bullish, predicting Bitcoin to hit over $63,000 by April 2024 and $125,000 by the end of next year.
“Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts.”
– Matrixport wrote in its report.
The firm added that this and geopolitical crosscurrents should result in enough monetary support to push Bitcoin to new highs in 2024.
