Bitcoin recovers beyond $43,000 and starts to rise in 2024.
A hopeful outlook for 2024 is reflected in Bitcoin's rebound over $43,000.
Monday was the day when the price of bitcoin successfully surpassed the $43,000 threshold, as the cryptocurrency continued to extend its recent gains.
According to Coin Metrics, the price of Bitcoin was most recently trading at $43,097.35, representing a gain of 2.93%. As a result of the long-awaited approval of spot bitcoin exchange-traded funds (ETFs), Bitcoin has rallied back into the green for the year, following a period of heavy losses. 2023 concluded with Bitcoin hovering around the $42,000 mark. It is now up around 1.25 percent for the year 2024.
Ether saw an almost 2.06% increase, reaching $2,304.82. Increases in the cryptocurrency market were driven by the Solana SOL token and the Cardano ADA token. They both increased by 6.8% and 7.4%, respectively.
In recent weeks, Bitcoin exchange-traded funds (ETFs) have been the most significant factor in the price behavior of the cryptocurrency. Some investors were dissatisfied with the outflows from the Grayscale Bitcoin ETF; however, they were able to put their concerns to rest last week when they looked to decrease.
Even if exchange-traded funds (ETFs) continue to be the primary driver, they are not the only ones. Investors are continuing to monitor the impact that macroeconomic factors have on prices. Tuesday is the day when the Federal Reserve will begin its policy meeting, which is particularly prominent this week.
Investors are almost positive that the central bank will maintain the current level of interest rates; nevertheless, they are looking for a hint from the Federal Reserve that it will begin reducing interest rates shortly—possibly as soon as March. The general risk-taking and the technology industry might both benefit from lower interest rates, which would be beneficial for Bitcoin.
According to Callie Cox, an analyst at the investing firm eToro, “the rate environment is still working in favor of Bitcoin.” “Inflation has reached the target that the Federal Reserve had set for it, and they have a compelling argument to reduce it within the next few months.”
The addition that she made was that “Bitcoin has also thrived on Fed days with inflation.” Since July 2022, it has outperformed the S&P 500 in nine out of the previous twelve days that the Federal Reserve has held its meetings.
