- Bitcoin (BTC) hits $40,000
- Ethereum rose over $2,200 for the first time in months.
Bitcoin surged above $40,000 for the first time in 19 months on Sunday, signalling a notable milestone since early May 2022. Concurrently, Ethereum experienced an upswing, surpassing the $2,200 mark in a relatively subdued yet widespread rally across the cryptocurrency markets.
After flirting with the $40,000 level in recent days, Bitcoin decisively breached this threshold, reaching over $40,600 at the time of reporting, marking a 3% increase in the past 24 hours, according to Fininterest data. Ethereum followed suit, trading at $2,205 with a similar percentage rise in the same period. While most of the top-10 cryptocurrencies witnessed modest gains, BNB coin, affiliated with the Binance exchange, saw a slight decline of about 0.1% over the past day.
Fininterest crypto analyst Nellius Irene commented on the data,” Bitcoin’s triumphant return above $40,000 signals a resurgence, echoing optimism in the crypto realm. Ethereum joins the rally, breaching $2,200. As institutional interest and dovish sentiments align, the stage is set for an intriguing bull run ahead. The journey to new heights has just begun.”
Bitcoin’s recent upward trend is attributed to seemingly dovish remarks from U.S. central bankers and growing optimism surrounding the potential approval of a spot bitcoin exchange-traded fund (ETF) in the United States.
Ethereum, not having surpassed $2,200 since May 2022, experienced a similar upward trajectory, coming close on a few occasions. Recent reports also indicated that Bitcoin holders withdrew 37,000 BTC between November 17 and December 1, suggesting a trend of taking direct custody of their coins.
The surge in Bitcoin’s value coincided with gold hitting a record high of over $2,100 per ounce during early Asian trading hours, responding to dovish comments from Federal Reserve Chairman Jerome Powell. Analysts attribute the positive momentum in the cryptocurrency market to expectations of a rate cut in the coming year and increased optimism surrounding Bitcoin ETF applications from major asset management firms.
Lucy Hu, Senior Analyst at Metalpha, noted, “This is an official statement of a bull run, and the price could see more upticks in the coming weeks.” Powell’s recent comments on interest rates suggest they are well into restrictive territory, further fueled the narrative that the tightening cycle has peaked, contributing to downward pressure on Treasury yields.
In contrast, crypto data provider Amberdata observed, “Crypto, on the other hand, has been moving nicely higher, along with Gold, on the back of lower yields,” in a newsletter on Sunday. The confluence of factors, including institutional interest and macroeconomic conditions, is shaping a positive outlook for the cryptocurrency market in the foreseeable future.
