Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Bitcoin rises above $42,000 for first time since April 2022

Published Dec 03, 2023 18:10 Updated Dec 04, 2023 15:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Bitcoin coins are seen at a stand during the Bitcoin Conference 2023, in Miami Beach, Florida, U.S., May 19, 2023. REUTERS/Marco Bello/File photo
 
BTC/USD
+4.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Tom Wilson, Tom Westbrook and Chibuike Oguh

LONDON/SINGAPORE/NEW YORK (Reuters) -Bitcoin rose on Monday, briefly surpassing $42,000 to reach a 20-month high, in a new surge of momentum fueled by U.S. interest rate cut expectations and traders betting that American regulators will soon approve exchange-traded spot bitcoin funds.

The world's biggest cryptocurrency rose to $42,162, its highest since April 2022, seemingly casting off the gloom that had settled over crypto markets following the collapse of FTX and other crypto-business failures last year. It was up 8.27% at $42,005 as of 20:00 GMT.

Bitcoin's gains lifted the shares of cryptocurrency-related companies, as well as exchange-traded funds (ETFs) listed in the United States.

Coinbase (NASDAQ:COIN) jumped 7% and Microstrategy gained 6.3%, while bitcoin miners such as Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA) and CleanSpark (NASDAQ:CLSK) rose between 7% and 13%. Last week, Microstrategy disclosed it bought an additional $593 million in bitcoin during November.

The ProShares Bitcoin Strategy ETF, which tracks bitcoin futures, rose 7.5%, while the ProShares Short Bitcoin Strategy ETF that allows traders to bet on a fall in bitcoin futures dropped 7.5%.

Bitcoin's "remarkable ascent" can be attributed to a "confluence of factors" that were buoying sentiment, Luuk Strijers, chief commercial officer of crypto derivatives exchange Deribit, wrote in a note on Monday.

He cited widespread optimism that the U.S. securities regulator may soon approve a spot bitcoin ETF, which would throw open the bitcoin market to millions more investors. Abating inflation would lead central banks to begin easing rate hikes, making riskier assets more attractive, he said, and noted a steady increase in institutional engagement.

Bitcoin is up by more than 150% so far this year.

Riskier investments and other interest-rate sensitive assets, such as gold, have also rallied hard over the last few weeks as markets wager that the U.S. Federal Reserve has finished hiking rates and will start cutting early in 2024.

Reports in October that the U.S. Securities and Exchange Commission (SEC) would not appeal a court ruling that the agency had been wrong to reject its spot bitcoin ETF application have also driven bets that an eventual approval is near.

SEC Chair Gary Gensler said in October the agency's commissioners would potentially consider as many as 10 bitcoin ETF filings, but could not provide guidance on timing.

A spot bitcoin ETF could allow previously wary investors access to crypto via the tightly regulated stock market. Demand is expected to be as much as $3 billion in the first few days of trading, and pull in billions more thereafter.

Investors are confident the SEC could approve multiple spot bitcoin ETFs as early as January, based on key public SEC filing and comment deadlines, Matteo Greco, research analyst at digital asset investment firm Fineqia International, wrote in a note.

"An approval is expected to bring short-term capital influx from the traditional finance investors."

Investors have also welcomed the settlement of a years-long U.S. criminal probe into Binance, the world's largest crypto exchange and a key cog in the worldwide crypto market.

The deal, in which Binance founder Changpeng Zhao stepped down after pleading guilty to breaking U.S. anti-money laundering laws, allows the company to continue operating.

Ether, the coin linked to the Ethereum blockchain network, rose more than 6% on Monday, hitting $2,274.88.

Both bitcoin and ether remain far below their 2021 record highs of $69,000 and $4,868, respectively.

Bitcoin rises above $42,000 for first time since April 2022
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email