$45,000 mark broken
SEC decision drives Bitcoin higher
January 2, 2024, 4:37 p.m
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Within a year, Bitcoin climbs to $45,000. This means it can almost triple its value compared to last year. And it could go even higher. Investors are hoping for the approval of a fund that can be used to invest in the cryptocurrency via the stock exchange.
The digital currency Bitcoin has risen above the $45,000 mark for the first time since April 2022. Most recently, a Bitcoin on the Bitstamp trading platform cost 45,200 dollars (41,000 euros), around seven percent more than before the long weekend.
The price is driven by an eagerly awaited decision from the US Securities and Exchange Commission (SEC). A new fund is currently being examined there that will invest directly in Bitcoin. If the fund receives approval, it would be the first Bitcoin-denominated spot ETF. Experts expect that investor interest would increase significantly as a result.
A Bitcoin ETF would track the price of the cryptocurrency. This would make investing in the currency much easier because consumers could then invest without having to buy Bitcoins directly. The US Securities and Exchange Commission has until January 10th to decide on the fund. Speculation about such approval has been driving up the price of Bitcoin since mid-October. Since then it has increased by around two thirds.
The prospect of key interest rates from the central banks in the USA and the Eurozone also providing a tailwind. With the latest price jump, Bitcoin has returned to a market value of almost $890 billion. Despite recent price gains, Bitcoin is still far from its record high. This was marked at just under $69,000 in November 2021.
Just over a year ago, Bitcoin had slipped below the $16,000 mark. At that time, turbulence on the crypto market in connection with the crypto exchange FTX caused a price collapse.