Tonight, the price of Bitcoin reached $40,000 for the first time since the end of April 2022, and now the price of the largest cryptocurrency is approaching $42,000. In turn, the second largest cryptocurrency Ethereum (ETH) rose to over $2,200 as part of a general rise in cryptocurrency markets.
The price of Bitcoin has been trying to break through the $40,000 mark for several days, but on Sunday it finally broke through it and was trading at around $41,700 at the time of publishing this material. This corresponds to an increase of around 5.7%. per day. Ethereum traded above $2,260, up 4.7% in the last 24 hours. Most other cryptocurrencies in the top 10 by market capitalization posted smaller gains, with only the BNB token linked to the Binance exchange falling by around 0.35% in the last 24 hours.
The price of the world’s largest and oldest cryptocurrency fell below $40,000 in April 2022. However, Bitcoin has surged this year, particularly in recent months, thanks largely to seemingly dovish comments from U.S. Federal Reserve officials and hopes of a spot Bitcoin exchange-traded fund (ETF) set to launch in the year could be approved country.
Note that Bitcoin’s rise comes just days after gold futures hit a record high of $2,087 after Federal Reserve Chairman Jerome Powell said interest rates were now on the verge of a cut, because the US Federal Reserve will cut the key interest rate this year.
“The market is increasingly anticipating a rate cut next year, and investors are increasingly optimistic about the prospects for Bitcoin ETF launches by some of the biggest players in asset management.“Metalpha senior analyst Lucy Hu wrote in her note. — This is the official announcement of the start of the bull market and the price could see further gains in the coming weeks.“
In recent weeks, traders have been betting that Bitcoin will eventually rise to $45,000 by the end of March 2024. Additionally, cryptocurrency industry executives see the beginning of a new growth cycle, with more and more people saying Bitcoin will reach new all-time highs above $100,000 in 2024. Bitcoin is up more than 120% this year.
“It feels like [2023 год] was a year of preparation for the upcoming bull market. But the mood is very optimistic  and 25 years“Ledger CEO Pascal Gauthier told CNBC last week.