Bitcoin outlook Financial News

Bitcoin hit a new all-time high on Tuesday, surpassing the $72,500 mark, boosted by a flood of inflows into new spot bitcoin exchange-traded funds as well as hopes that the Federal Reserve will soon cut interest rates. In the last 24 hours, Bitcoin jumped to an intraday high of $72,850. Bitcoin has gained over 70% this year and most of the gains have come over the last few weeks. «The catalyst behind this surge is the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs,» said Rajagopal Menon, Vice President, WazirX.

The largest cryptocurrency jumped to another all-time high of more than $70,000 on Friday, capping a seven-week run of more than 70%.

Bitcoin's journey has been marked by both triumphs and challenges, and the year 2024 promises to bring about new trends and emerging themes that will shape the future of this decentralized digital asset. Before we get excited or curious about what 2024 is about to bring us, let us remember that studies and trends have showing an explosion of trends in cryptocurrency that investors can try to participate in.

Bitcoin’s chances of hitting $40,000 are top of mind for crypto speculators as they head into the final stretch of a year during which the largest digital asset more than doubled in price. The token has rebounded about 130% over the past 11 months from 2022’s crypto rout, outstripping investments like stocks or gold. Hopes for Federal Reserve interest-rate cuts next year, and expectations that the US will allow its first spot Bitcoin exchange-traded funds, together created a potent elixir. The rally weathered a US crackdown that put Sam Bankman-Fried behind bars for fraud at FTX and handed top crypto exchange Binance and its founder Changpeng Zhao rap sheets and big fines. For optimists, the drive to curb questionable practices and the recent flurry of ETF applications point to a maturing industry and the potential for wider crypto adoption. “In order to get to $40,000, we just need that approval for the spot Bitcoin ETF,” said Fiona Cincotta, senior financial markets analyst at City Index Ltd. The token recently lost some steam, in part as big swings in equities and currencies attracted the attention of investors, she said.

Bitcoin reaching levels not seen in about nine months. The largest digital asset topped $28,000 for the first time since June 2022, trading for as much as $28,258 on Sunday. Since the start of the year, Bitcoin’s price has risen almost 70%. Other digital assets rallied as well — with Ethereum up about 17% since the start of last week and so-called altcoins like Solana and Cardano advancing, too. Traders waded high levels of uncertainty last week in markets. US two-year yields fluctuated wildly, and the Cboe Volatility Index, the so-called fear gauge also known as the VIX, spiked above 30. But Bitcoin kept steadfast — and straight up. “Bitcoin is correlated with liquidity conditions and real rates. Real rates have declined, liquidity conditions have expanded, and it looks as if we’re entering a new regime,” said Ilan Solot, co-head of digital assets at Marex.

Bitcoin has had a terrible start to the new year. The crypto major has lost about 50 per cent of its value from the peak touched in November 2021. Its total market cap has fallen below $700 billion from around $1.25 trillion during its golden days, thanks to the ongoing carnage in the crypto market. The geopolitical tensions in Europe and the middle east, ban proposal from Russia, inflationary worries, US FOMC meet and beaten down equity markets are some of the key reasons that have dragged the crypto markets lower.