Bitcoin Surges Past $41K Mark Amid Optimism Over Approval of Spot BTC ETF; Gold Hits All-Time High
Summary:
Gold reached a record high value, surpassing $2,100, while Bitcoin (BTC) surged past the $41,000 mark, a high unseen in 19 months. The Bitcoin resurgence raced through the $40K and $41K thresholds, marking a 19-month high, with an over 140% rise since the beginning of the year. Indications suggest Bitcoin could reach over $60,000 by April next year and even hit $125,000 by end of 2024. The potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States is escalating market anticipation, which could usher in a new era of institutional Bitcoin investment and push BTC prices even higher.
Gold's value has hit a fresh record high, surpassing the crucial $2,100 mark during the Asian trading times on Monday, Dec. 4th. At the same moment, Bitcoin (BTC) has rocketed past the $41,000 mark, the highest it's seen in 19 months. BTC/USD (in blue) and the price of gold (in orange) both witnessed significant increases (Source: Tradingview). Bitcoin's price raced past the $40K, and then the $41K landmarks, marking a triumphant comeback to the $40K level it hadn't seen since the highs of April 2022. It experienced a 2% burst within 24 hours, which is its highest peak in the last 19 months. Along with the gold's new all-time high, several other factors like the central bank's decision to dissolve, the worst bond crash in 250 years, the BTC ETF, shaking real estate and banking sectors, the Federal Reserve's readiness to pump, upcoming Bitcoin halving in April, and the launch of Bitcoin L2, contributed to Bitcoin's wild surge.
Furthermore, Bitcoin has seen an upward trajectory of over 140% since the beginning of this year. According to Markus Thielen, the head of research at Matrixport, Bitcoin's future seems extremely bullish. Based on past trends of bull cycles after bear markets and the fast-approaching Bitcoin halving, it's predicted that Bitcoin could reach beyond $60,000 by April next year and even surge to $125,000 by the end of 2024. These forecasts stem from the historic pattern of price hikes before the halving events, predicting an over 200% surge.
The anticipation of the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States further fuels this speculation. With 13 hopeful contenders including titans like BlackRock and Grayscale, all eyes are on the pending decision of the Securities and Exchange Commission (SEC). Analysts at Bloomberg’s ETF predict a high likelihood of all pending bids being approved simultaneously by Jan. 10. This would not just mark a new age of institutional participation in Bitcoin, but could also push BTC prices higher.
Bitcoin Analyst Willy Woo observed on X, in relation to the new high in gold price, that a Bitcoin spot ETF is very likely on the horizon. He reminded us of the first commodity ETF which was SPDR Gold Trust: a simple choice for investors who wanted to add gold to their portfolios. After the Gold ETF was launched, gold saw an 8-year rally with no drop in year-on-year price from 2005 - 2012.
Hence, Bitcoin's recent surge past the important $40,000 mark clearly shows a bullish market sentiment. This is further enhanced by the potential approval of a spot Bitcoin ETF in January and the expectation of more favourable regulatory developments. Added to this is the upcoming Bitcoin halving event, all of which are projected to propel the BTC price higher over the next five months. However, this article neither provides investment advice nor recommendations. Each investment or trading action carries certain risks, thus, readers should conduct their own comprehensive research before making a decision.
Published At
12/4/2023 6:25:33 AM
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