Bitcoin (BTC) surpassed the long-awaited $40,000 milestone, rising to this level for the first time since late April 2022. Meanwhile, Ethereum (ETH) also joined the rally, surpassing $2,200 amid a broader rally in cryptocurrency markets. Here are the details…
Bitcoin experienced a resilient surge
Bitcoin’s price climbed strongly by nearly 2%, reaching $41,725 in 24 hours, reaching a 19-month high. This surge not only broke the $40,000 barrier, but also set a new yearly high, marking a significant 140% gain since the beginning of the year. However, it remains approximately 42% below its all-time high of over $69,000 recorded on November 10, 2021.
cryptokoin.com As we reported, Markus Thielen, director of research at Matrixport, predicted that Bitcoin would reach over $60,000 by April 2024 and $125,000 by the end of the same year. Thielen’s analysis is based on historical patterns, specifically the bullish cycles that follow Bitcoin mining reward halvings, with the next halving expected to occur in mid-April 2024.
BTC ETF speculation continues
The rise in Bitcoin price is in line with speculation about the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Standard Chartered predicts Bitcoin could reach six figures by the end of next year and expects spot ETFs to launch in the US. There are currently 13 bidders for the spot Bitcoin ETF, and Bloomberg ETF analysts put the probability of simultaneous approval by January 10 at 90%. With the price of Bitcoin surpassing $40,000, all eyes turned to the next resistance level at $42,330.
While technical charts point to a bullish trend, analysts are ruling out major pullbacks once the $40,000 region is reached. Some market experts even predict that Bitcoin will reach $60,000 before the next halving in April 2024. Investors have also loaded up on upside options plays in recent weeks, betting that Bitcoin will rise to $45,000 by the end of March 2024. Next week, US ISM services PMI data and December non-farm employment data will be announced. A strong NFP number could cause Fed rate cut bets for 2024 to unwind, slowing BTC’s rise.
Ethereum also participated in the rally
Not to be outdone, Ethereum, the world’s second-largest cryptocurrency, surpassed $2,200, extending its weekly gain to over 9%. Analysts are predicting an ongoing rally for Ethereum, with potential targets reaching $2,600 and even $3,500. As a result, the cryptocurrency market is experiencing a revival, led by Bitcoin and Ethereum. Investor optimism is rising as Bitcoin surpasses $40,000 and Ethereum breaks the $2,200 barrier. The upcoming decision on spot Bitcoin ETFs in the US and positive market sentiment sets the stage for further upside in the coming weeks.
