Bitcoin soars past $45,000, reaching new high since April 2022

Bitcoin, the world’s largest cryptocurrency, roared back to life on Tuesday, breaching the $45,000 mark for the first time since April 2022. This significant surge signals a noteworthy milestone in the cryptocurrency’s resurgence after a period of consolidation in the latter part of the previous year.

Bitcoin, exceeded $45,000 on Tuesday, marking its first such rise since April 2022. The start of the New Year saw a strong performance, fueled by optimism surrounding the potential approval of exchange-traded spot bitcoin funds.

Reaching a 21-month peak of $45,532, Bitcoin had a remarkable 156% gain in the past year, making it the strongest yearly performance since 2020. While currently at $45,727, it still lags behind its record high of $69,000 in November 2021.

Bitcoin is not the only cryptocurrency on the rise; Ether, associated with the Ethereum blockchain network, was up 2.6% at $2,414 on Tuesday, boasting a 91% surge in 2023.

In the U.S. premarket trading, crypto stocks closely mirroring bitcoin prices experienced a surge. Riot Platforms, Marathon Digital, and CleanSpark gained between 11.3% and 14.8%, rebounding from sharp declines in the final trading days of 2022. U.S. crypto exchange Coinbase rose by 6.3%, and software firm and bitcoin investor MicroStrategy added 9.4%, Reuters reported.

Analysts attribute the recent upward trend to various factors, including optimism about the potential approval of spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) by the first quarter of 2024 and expectations of looser monetary policies from major central banks.

Investor attention is focused on whether the U.S. securities regulator will approve a spot bitcoin ETF, which could open up the market to millions more investors and attract billions in investments. Despite previous rejections citing the vulnerability of the cryptocurrency market to manipulation, there are signs regulators may approve some of the 13 proposed spot bitcoin ETFs, with a decision expected in early January.

The sustained upward movement highlights the Bitcoin network’s resilience and its enduring appeal to investors seeking alternative assets. However, the long-term sustainability of this momentum remains uncertain, with potential regulatory challenges and broader market volatility posing significant obstacles.

Meanwhile, Bernstein analyst Gautam Chhugani predicted Bitcoin could hit $150,000 by 2025. This bullish forecast stands at about five times the current Bitcoin value, currently hovering around $34,000, and more than double the cryptocurrency’s peak value, which surpassed $67,000 in November 2021.