Bitcoin and Ether have experienced a significant market resurgence, with Bitcoin surpassing $41,000 and Ether breaching $2,200. This marks a return to price levels last seen before the Terra crash in April 2022. The crypto market’s recovery is attributed to positive sentiments from U.S. central bankers and optimism surrounding a potential approval for a spot bitcoin exchange-traded fund (ETF).
Bitcoin Breaks $41,000 Barrier, Up 5% in 24 Hours
Bitcoin’s price surpassed the $41,000 mark during the Monday business day in Asia, representing the first time since April 2022. The move follows a period of Bitcoin hovering around the $40,000 level, culminating in a 24-hour rise of approximately 5%. The rally is fueled by optimistic comments from U.S. central bankers and growing expectations for a bitcoin ETF approval in the U.S.
Ether Exceeds $2,200, Reflecting a Similar Percentage Rise
Ether, the second-largest cryptocurrency, also experienced a notable surge, surpassing $2,200. This achievement is significant as Ether had not traded above this level since May 2022. The rise in Ether’s price is in line with the positive momentum in the broader crypto market, with a similar percentage increase observed over the past 24 hours.
Market Dynamics: Other Top Cryptocurrencies and Gold’s Record High
While Bitcoin and Ether led the market rebound, other top ten cryptocurrencies saw smaller gains, with Binance Coin (BNB) registering a marginal decline. Additionally, gold reached a record high of over $2,100 per ounce during Asian trading hours, responding to dovish comments from Federal Reserve Chairman Jerome Powell.
The crypto market’s resurgence is attributed to dovish remarks from U.S. central bankers, indicating a potential rate cut in the coming year. Furthermore, anticipation of a spot bitcoin ETF approval in the U.S. has fueled investor bullishness. The withdrawal of 37,000 BTC from exchanges between Nov. 17 and Dec. 1 suggests a trend of investors opting for direct custody of their coins.
Analysts predict that the crypto market is entering a bullish phase, with Bitcoin expected to experience further upticks in the coming weeks. The positive sentiment is reinforced by the market’s reaction to lower yields, as evidenced by the simultaneous rise in gold and crypto prices. Traders are actively engaging in topside option plays, anticipating Bitcoin’s potential ascent to $45,000 by March 2024.
Looking ahead, the crypto market’s trajectory may be influenced by economic data releases, including U.S. ISM services PMI data and non-farm payrolls for December. A strong non-farm payrolls figure could impact Federal Reserve rate cut expectations for 2024, potentially affecting Bitcoin’s upward momentum.
Crypto Market Enters Bullish Phase with Bitcoin and Ether Leading the Rebound
The recent surge in Bitcoin and Ether prices, reclaiming significant milestones, indicates a bullish phase in the crypto market. Positive market sentiments, dovish central bank remarks, and the prospect of a bitcoin ETF approval contribute to the ongoing market recovery.