Bitcoin has surged past the $45,000 mark, reaching its highest level in nearly two years. It gained up to 4% on January 2, 2024, currently trading at $44,844.
Key Takeaways
- Bitcoin surpasses $45,000, marking a nearly two-year high with a 4% surge.
- Anticipation of a spot ETF approval by the US SEC drives Bitcoin’s recent rally.
- Traders exhibit a fear of missing out (FOMO), leading to increased buying activity ahead of the Jan. 10 SEC deadline.
- Optimism prevails among investors, with expectations of Bitcoin touching $50,000 on the back of spot ETF approval.
Bitcoin Hits $45,000
Bitcoin has achieved a significant milestone by surpassing $45,000, reaching its highest level in almost two years. The cryptocurrency experienced a 4% surge on January 2, 2024, trading at $44,844.
#Bitcoin surpasses $45,000 for the first time in nearly two years on #ETF approval hope.
— NDTV Profit (@NDTVProfitIndia) January 2, 2024
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This notable uptick is fueled by heightened expectations of the approval of a spot exchange-traded fund (ETF) directly linked to Bitcoin, with the anticipation intensifying as the January 10 deadline set by the US Securities and Exchange Commission (SEC) approaches.
FOMO-Driven Trading and $50,000 Optimism
Traders, particularly in the US and Europe, are exhibiting a fear of missing out (FOMO), leading to increased buying activity, especially on the first morning of the new year.
The general sentiment is one of optimism, with traders expecting Bitcoin to touch $50,000 soon, riding on the positive momentum generated by the anticipated spot ETF approval.
Bitcoin’s Broader Market Sentiment
Bitcoin’s remarkable resurgence over the past 12 months is not solely attributed to ETF expectations. A broader risk-on sentiment, driven by expectations of declining interest rates in the US, has played a pivotal role.
This rally marks a partial recovery from the significant crash experienced in 2022, which had reverberating effects throughout the cryptocurrency industry. Despite this recent surge, Bitcoin has yet to surpass its pandemic-era record of almost $69,000 set in 2021.
To Conclude
Bitcoin’s surge beyond $45,000 signifies a notable milestone, propelled by the growing anticipation of a spot Bitcoin ETF approval and a broader positive market sentiment.
The fear of missing out (FOMO) has driven increased trading activity, particularly as the Jan. 10 SEC deadline approaches. Optimism prevails among investors, with expectations of Bitcoin reaching $50,000 in the near term. The cryptocurrency’s resilience and recovery from the 2022 crash underscore its ongoing significance in the financial landscape.
