Bitcoin has soared to over $40,000, marking its highest point this year, fueled by optimism around potential U.S. interest rate cuts and expectations of imminent approval for U.S.-stockmarket traded bitcoin funds.
The cryptocurrency reached $40,210 on Sunday afternoon before settling at $40,011 early in Asia on Monday.
According to Capital.com analyst Kyle Rodda, "Bitcoin thrives on breaking psychological levels, exciting enthusiasts, and adding momentum.
"Bitcoin has more than doubled in value year on year, shedding the effects of the "crypto winter" that followed previous scandals like the FTX exchange failure".
The larger market trend of riskier investments and interest-rate sensitive assets, including gold, is ascribed to the expectation that the US Federal Reserve will drop rates in early 2023, following the conclusion of rate hikes.
Market speculation grew when reports in October revealed that the Securities and Exchange Commission will not appeal a court verdict in favour of crypto firm Grayscale Investments, implying that a spot bitcoin ETF could be approved.
This permission might allow cautious investors to enter the cryptocurrency market via traditional stock channels, ushering in a new surge of wealth.
Ether, which is tied to the Ethereum network, hit a one-and-a-half-year high of $2,218 on Sunday before settling at $2,197 in Asia on Monday.
While bitcoin and ether are still trading below their 2021 highs, the present momentum indicates a bullish shift in the market mood.
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