A first for Bitcoin since May 2022! It has surpassed the critical level

Bitcoin, the largest digital asset, has climbed above 40 thousand dollars as it continues its recovery in 2023, driven by expectations of falling interest rates and increasing demand from the exchange-traded fund sector.

According to the report on Bloomberg HT, Bitcoin rose 2.9 percent to reach 40,867 dollars, remaining slightly below this target as of 10:33 AM Monday in Singapore, bringing its 2023 rally to 146 percent. Bitcoin was last at these levels in April 2022, before the collapse of the TerraUSD stablecoin, which contributed to a 2 trillion dollar decline in digital assets.

Investors are increasingly convinced that the Fed is finished with interest rate hikes as inflation cools, and attention is turning to the potential scale of cuts next year. The shifting landscape has triggered a rally in global markets.

The crypto industry is also awaiting the outcome of applications by companies such as BlackRock to launch the first spot Bitcoin ETFs in the US. Bloomberg Intelligence expects some of these products to receive approval from the Securities and Exchange Commission by January.

Tony Sycamore, a market analyst at IG Australia Pty, said in a note that "Bitcoin continues to be supported by optimism regarding the SEC's approval of ETFs in 2024 and the Fed's interest rate cuts." Sycamore added that chart patterns point to 42,330 dollars as the next level to watch.

Bitcoin's revival after the 2022 crypto crash has weathered the US crackdown that put Sam Bankman-Fried behind bars for fraud at FTX and resulted in criminal records and heavy fines for the leading crypto exchange Binance and its founder Changpeng Zhao.

News Source: 12punto