Tuesday, December 5, 2023 – 5:30 p.m. WIB
Device – Bitcoin (BTC) rose above $42,000 to hit a 20-month high, with new momentum fueled by a possible U.S. interest rate cut and traders betting the U.S. will soon approve a Bitcoin spot exchange-traded fund in January 2024.
The world's largest cryptocurrency rose as high as $42,162 on Monday, its highest level since April 2022, appearing to escape pressure from the crypto market following the failure of FTX and other crypto business failures last year. Its value increased by 6.49% to $41,311.26 at 23.00 WIB (04/12/2023).
Bitcoin's rise has impacted stocks of cryptocurrency-related companies as well as U.S.-listed exchange-traded funds (ETFs).
Coinbase (NASDAQ:COIN) is up 6.5% and Microstrategy (NASDAQ:MSTR) is up nearly 6%, while Bitcoin mining companies like Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA) and CleanSpark (NASDAQ:CLSK) rose in the range of 8% to 11%. Last week, Microstrategy announced that it had purchased an additional $593 million worth of Bitcoin in November.
Meanwhile, the ProShares Bitcoin Strategy ETF, which tracks Bitcoin futures, rose as much as 7.3%.
Bitcoin's “extraordinary” rise was due to “various factors” boosting sentiment, Luuk Strijers, chief commercial officer of crypto derivatives exchange Deribit, said in a note on Monday.
These factors include widespread optimism that U.S. securities regulators could soon approve a Bitcoin spot ETF that would open the Bitcoin market to millions more investors; falling inflation, which will result in central banks starting to reduce interest rate hikes, making risky assets more attractive; and a steady increase in institutional commitment.
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