Breakthrough past $42k
Bitcoin (BTC) has surpassed the $42,000 mark. This marks its highest level since April 2022 before the Terra crash. Ether (ETH) also climbed above $2,200.
In recent days. Bitcoin had been flirting with the $40,000 level, finally breaking through on Monday to trade above $41,600. Ether was trading around $2,240, reflecting a similar percentage gain. These are historic prices.
The upward momentum also lifted other crypto-related stocks. Coinbase (COIN) saw nearly a 9% increase. Crypto miners like Marathon Digital (MARA) and Riot (RIOT) gained over 10%.
Among the top 10 cryptocurrencies by market capitalization, smaller gains were observed. BNB coin (BNB), for example, remaining relatively unchanged.
Bitcoin’s price dropped below $40,000 in April 2022. Recently, it has been on a rally, partly fueled by optimistic remarks from U.S. central bankers. Also, anticipation surrounding the approval of a spot bitcoin exchange-traded fund (ETF) in the U.S. Similarly, Ether hadn’t traded above $2,200 since May 2022, although it came close a few times.
One Bitcoin holders withdrew 37,000 BTC between Nov. 17 and Dec. 1, suggesting a preference for direct custody of their coins.
Future
These developments are indicative of a bullish trend for Bitcoin. We may see sustained price growth in very near future. Last week, Jerome Powell suggested that interest rates are now leaning toward restrictive levels. That is reinforcing the belief that the tightening cycle has peaked which is contributing to the decline in Treasury yields.
In contrast, crypto assets, along with gold, have been trending higher due to said lower yields. Bitcoin has been eager to go higher, even without the Spot ETF catalysts, the market is looking to get long. Traders have been increasingly betting on Bitcoin’s rise to $45,000 by the end of March 2024, evidenced by their increased activity in topside option plays.
