Bitcoin Achieves Milestone, Surpasses $45,000

Marking a robust start to the New Year, Bitcoin surged past the $45,000 mark on Tuesday, reaching levels not seen since April 2022. This upswing is attributed to the positive sentiment surrounding the potential approval of exchange-traded spot bitcoin funds, the world's largest cryptocurrency.

Bitcoin demonstrated remarkable growth in 2023, boasting a 156% increase and achieving a 21-month high at $45,532. This stands in stark contrast to its record high of $69,000 in November 2021. Despite the surge, it settled at $45,727, reflecting a 3.5% uptick, as reported by Reuters.

Ether, the token associated with the Ethereum blockchain, mirrored this trend, witnessing a 2.6% rise to $2,414 on Tuesday, following a noteworthy 91% surge in 2023.

In sync with bitcoin's performance, cryptocurrency stocks rebounded during US premarket trading after facing setbacks in the closing days of 2022. Companies such as Riot Platforms, Marathon Digital, and CleanSpark experienced gains ranging from 11.3% to 14.8%. Notably, Coinbase, a US cryptocurrency exchange, saw a rise of 6.3%, while MicroStrategy, a software company and bitcoin investor, surged by 9.4%.

Investors are closely eyeing the potential approval of a spot bitcoin ETF by the US Securities and Exchange Commission (SEC). This regulatory green light could attract substantial investments and enhance market accessibility. Despite previous rejections citing concerns about market manipulation, recent signals indicate a more favorable stance from the SEC. A decision on the 13 proposed spot bitcoin ETFs is anticipated in early January.