Bitcoin price exceeds $45,000 on optimism over ETF approval

According to data from the analysis firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, increased by 5.88 percent in 24 hours, exceeding $1 trillion 740 billion.

The price of Bitcoin, the largest cryptocurrency, gained more than 7 percent in the last 24 hours, driven by growing expectations that the US Securities and Exchange Commission (SEC) will approve some of the 13 Bitcoin spot ETF (exchange-traded fund) applications in early January.

Expectations that major central banks will begin lowering interest rates this year and shift toward a more supportive monetary policy are also fueling the rise in Bitcoin.

Trading at $45,322 as of 09:30 TSI today, Bitcoin reached its highest value since April 2022. Bitcoin's weekly gain has exceeded 6 percent.

Bitcoin has gained more than 60 percent since October 2023, but it remains far from its record high of $68,990 in November 2021. Additionally, Bitcoin's price gained approximately 157 percent last year.

Analysts view the launch of a spot Bitcoin ETF as a significant step toward wider distribution and adoption of the digital currency.

Thirteen companies, including the world's largest asset management firm Blackrock, as well as VanEck, WisdomTree (WT.N), Fidelity, Bitwise, Grayscale Investments, and Invesco, had applied to the SEC for a Bitcoin spot ETF.

While the SEC has rejected numerous applications to launch spot Bitcoin ETFs in recent years, arguing that the cryptocurrency market is susceptible to manipulation, it noted that a potential rejection in the new year would likely lead to a sudden drop in Bitcoin.

Ethereum, the second-largest cryptocurrency by market value, also gained more than 5 percent in the last 24 hours, reaching the $2,380 level. Ethereum hit a record high in 2021, climbing above $4,000.

News Source: 12punto