Good news keeps coming, and Bitcoin has returned to $40,000 for the first time since May 2022.
Bitcoin prices have returned to $40,000 for the first time since May 2022, with the expected interest rate cut and increased demand for ETFs being the reasons for its rebound. Bitcoin has risen by 142%, leading to a global market rebound. The digital asset industry is awaiting the approval of ETFs by the U.S. Securities and Exchange Commission. Bitcoin is supported by the expectation of ETFs and a rate cut by the Federal Reserve. The cryptocurrency industry may be heading towards maturity and wider adoption.
Zhitong App noticed that the price of Bitcoin has reached $40,000 for the first time since May 2022. Bitcoin, as the largest digital asset, has continued its rebound this year due to expectations of interest rate cuts and increased demand for ETFs.
As of 6:35 am on Monday, the trading price of Bitcoin in Singapore was $40,099, bringing its increase in 2023 to 142%. Before the collapse of the stablecoin TerraUSD, the final price of Bitcoin was $40,000, which led to the collapse of digital assets and a series of collapses in the cryptocurrency industry.
With inflation cooling down, investors are increasingly convinced that the Federal Reserve has ended its rate hikes and shifted its focus to the possible extent of rate cuts next year. This backdrop of change has driven a rebound in global markets.
The digital asset industry is also waiting for the results of applications by companies such as BlackRock to launch the first batch of US spot Bitcoin ETFs. It is expected that a batch of such funds will receive approval from the US Securities and Exchange Commission (SEC) before January next year.
Tony Sycamore, a market analyst at IG Australia Pty, wrote in a report, "Bitcoin continues to be supported by the optimism of the approval of ETFs by the US Securities and Exchange Commission and the interest rate cuts by the Federal Reserve in 2024." He added that the technical chart pattern points to $42,330 as the next level to watch.
After rebounding from last year's cryptocurrency crash, Bitcoin has withstood the blows from the United States. Sam Bankman-Fried was imprisoned for fraud at FTX, and top cryptocurrency exchange Binance and its founder Zhao Changpeng were sentenced to prison and fined heavily. For optimists, the efforts to curb suspicious practices and the hype surrounding ETF applications indicate that the cryptocurrency industry is maturing and may be more widely adopted.
However, Bitcoin, as well as smaller tokens such as Ethereum and BNB, are still far below their record highs set during the cryptocurrency bull market during the pandemic. Bitcoin reached a peak of nearly $69,000 in November 2021.