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The biggest cryptocurrency in the world, Bitcoin, reached $41,522 on Monday, a considerable improvement over the difficulties the crypto markets encountered in 2022.
Inspired by a number of factors, including confidence about US interest rate decreases and anticipation of the establishment of US-stock market traded bitcoin funds, bitcoin has risen past $40,000 and reached its highest level since April 2022.
The biggest cryptocurrency in the world, Bitcoin, reached $41,522 on Monday, a considerable improvement over the difficulties the crypto markets encountered in 2022.
According to Reuters news agency Justin d’Anethan, Head of Business Development for Asia-Pacific at Keyrock, a company that creates markets for digital assets, the recent 50% increase in Bitcoin’s price since mid-October is perceived as a significant departure from the bearish pattern witnessed in 2022 and early 2023.
The evidence of institutional buying in November, he continued, has sparked fresh interest.
Although there is room for reversals, the lows of about $16,000 a year ago are thought to have marked a likely bottom.
Recall that last week, cryptocurrency investor Microstrategy disclosed that it had invested an additional $593 million in Bitcoin in November.
A surge in risky assets and interest-rate-sensitive assets, such as gold, has been attributed to the general market sentiment, which has been strengthened by the assumption that the US Federal Reserve will lower interest rates in early 2023.
Moreover, rumors of an impending approval have been stoked by news from October that the US Securities and Exchange Commission will not file an appeal against a court decision supporting an application for a Bitcoin exchange-traded fund (ETF).
Cautionary investors may have more opportunities to access the cryptocurrency market through conventional stock channels if a spot bitcoin ETF is approved.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Always conduct your research before making any financial decisions.
