The price of gold has reached a new all-time high, surpassing $2,100 during the Asian session on Monday. At the same time, Bitcoin has surged above $41,000 for the first time in 19 months.
Bitcoin breaks $40K...and $41K
Bitcoin has made a triumphant return to the $40,000 threshold, reaching a peak not seen since April 2022. In just 24 hours, the cryptocurrency experienced a 2% jump, marking a 19-month high.
Wild tailwinds for bitcoin: ✅ New ATH in gold ✅ to abolish central bank ✅ Worst bond crash in 250yrs ✅ BTC ETF on the cusp (?) ✅ Real estate trembling ✅ Consumer Tech languishing ✅ Banks shaking ✅ Fed getting ready to pump ✅ Halving in April ✅ Bitcoin L2 is here — Tuur Demeester (@TuurDemeester) December 4, 2023
What's more, Bitcoin has seen an increase of over 140% since the beginning of the year.
Insights from Matrixport’s research head, Markus Thielen, suggest an even brighter future. With historical trends and upcoming Bitcoin halving events in mind, projections place Bitcoin at over $60,000 by April next year and potentially as high as $125,000 by the end of 2024.
Such predictions are based on the historic pattern of price increases preceding halving events, with an expected surge of over 200%.
"On the eve of a spot Bitcoin ETF"
The potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States is further fueling speculation. With 13 bidders, including industry giants like BlackRock and Grayscale, the anticipation is building toward a decision by the Securities and Exchange Commission (SEC).
Bloomberg’s ETF analysts see a high probability of simultaneous approvals for all pending bids by Jan. 10. This would not only mark a new era of institutional participation and investment in Bitcoin but likely result in a boost for its price as well.
"It's very likely we are on the eve of a Bitcoin spot ETF," commented Bitcoin analyst Willy Woo. "The first commodity ETF was SPDR Gold Trust. It provided a simple way for investors to access gold in their portfolio."
Woo added, "When it launched, gold went on to an 8-year rally with no single down year between 2005 - 2012."
Therefore, Bitcoin's latest move above the psychological $40,000 level reflects bullish market sentiment fueled by the likely approval of a spot Bitcoin ETF in January and the prospect of regulatory advancements in general. Bitcoin's halving event is also expected to provide additional tailwinds for its price over the next five months.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
