📈 Bitcoin soars on the first days of the New Year 📈
📌 Bitcoin soared to $45,000 for the first time since April 2022, owing to an increase in geopolitical tensions in the Red Sea and growing optimism about the approval of a bitcoin exchange-traded fund. According to Coin Metrics, the world’s largest cryptocurrency reached an intraday high of $45,913.30 early Tuesday morning, its highest level since April 5, 2022, and the first time it has traded above $45,000 since then.
📌 The rise demonstrated bitcoin’s role as a hedge against uncertainty, which investors learned about last year. The majority of bitcoin’s six-month rally has been attributed to the potential ETF, but prior to that narrative, the regional banking crisis in the United States was the primary driver. This resulted in bitcoin’s first significant gain of the year, allowing the cryptocurrency to shine as an alternative to the existing system and a hedge against uncertainty.
📌 Bitcoin might have a positive 2024, according to investors. An ETF decision is widely expected to be made in January. Soon thereafter, the Bitcoin halving is expected, which has historically preceded steep price increases. Furthermore, Fed officials anticipate at least three interest rate cuts this year, following nearly two years of hikes that have harmed the cryptocurrency.