Bitcoin Surges Past $45,000 on New Year’s Day
Bitcoin experienced a brief surge above $45,000 on New Year’s Day, reaching a level it hadn’t seen since April 2022. This mirrors the rollercoaster ride of January that year when the cryptocurrency’s price fluctuated above this threshold multiple times within days, accompanied by dips as low as $36,000.
Bitcoin’s Recent Performance
According to CoinGecko, Bitcoin was last at $45,000 on April 5, 2022, and dropped to as low as $15,742 on November 9. On New Year’s Day, its market cap exceeded $836 billion with trading volumes reaching $22 billion.
At present, BTC has risen over 171% compared to the same time last year. It has also increased by more than 13% in the past month and over 5% for the day. Bitcoin began 2023 valued at under $17,000 per coin.
The Anticipation of a Bitcoin Spot ETF
This year, the ongoing anticipation of the approval of a Bitcoin spot ETF by the SEC seems to be driving much of the upward movement. However, many deadlines have passed without any formal action on pending applications for a spot ETF. The question remains: could 2024 be the year it finally happens? And how will it affect the price of Bitcoin?
The Psychological Significance of Round Numbers
While big round numbers like $45,000 may not hold any special significance, they do represent psychological barriers for investors. Reaching these milestones tends to increase confidence and spur more trading activity. Bitcoin holders are hopeful that this could create a positive feedback loop.
Bitcoin’s Market Capitalization
As Bitcoin continues its rally, its market capitalization continues to grow. With a market cap of $855 billion, it has surpassed Tesla, which is valued at $750 billion, according to CompaniesMarketCap. Furthermore, Bitcoin has also surpassed Warren Buffett’s Berkshire Hathaway Inc., with a market cap of $774 billion, and Meta Platforms (formerly known as Facebook), which stands at $815 billion.
Hot Take: Bitcoin’s Volatility and Future Outlook
Bitcoin’s recent surge past $45,000 reflects its volatile nature and the excitement surrounding its performance. As it approaches the high it reached last year near $50,000, investors are eager to see if it can break this barrier once again. The approval of a Bitcoin spot ETF in the future could have a significant impact on its price trajectory. However, with past deadlines passing without action, the question of when this approval will happen remains uncertain. Nevertheless, Bitcoin’s current rally and growing market capitalization indicate that it continues to be a dominant force in the cryptocurrency market.
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