Bitcoin’s ‘jet-fueled’ 16% six-day jump takes token past $44,000
Bitcoin’s longest winning run since May lifted the token past $44,000, sparking questions about whether the breakout increasingly reflects a conviction that looser Federal Reserve monetary policy lies ahead.
The largest digital asset climbed for six days through Tuesday, adding roughly 16%, and was consolidating the gains in early Asian trading on Wednesday. Its 2023 rebound from last year’s crypto rout now stands at 165%.
Much of the rally is pegged to the prospect of the US allowing its first spot Bitcoin exchange-traded funds, paving the way to a wider investor base. BlackRock Inc. and Fidelity Investments are among those awaiting the outcome of their applications, with some analysts expecting a green light by January.
But ETF hype has shadowed Bitcoin since June, when asset managers began seeking approval to roll out the funds. That’s leading some to ask if the token’s surge is now drawing more succor from wagers on Fed rate cuts next year.
Did you Know?
As a beginner to cryptocurrency investing, you should consider two critical things. First, you should determine and understand your risk tolerance, as cryptocurrencies can be volatile. Only invest what you can afford to lose. Secondly, don’t put all your funds in one cryptocurrency; diversify to mitigate risks. Deciding where to invest your hard-earned money can be difficult.
View Details»
“Surely the ETF story is well and truly priced?” said Tony Sycamore, a market analyst at IG Australia Pty. The high volatility, “jet-fueled” move up in Bitcoin is instead a reminder that crypto is “more responsive to a Fed pivot and policy than other asset classes,” he said.
For now Bitcoin momentum is overshadowing any concerns that the surge is at risk of becoming too
