Bitcoin Soars Beyond $40,000: Heading Towards $100,000!

This weekend, the Bitcoin (BTC) price crossed the symbolic $40,000 threshold, reaching $40,846 on Sunday evening. This is its highest level since April 28, 2022. Carried by a wind of optimism, the flagship cryptocurrency is making its return to the heights after more than a year of turmoil.

A rise that rewards resilient investors

After a nightmarish year in 2022, which saw it lose up to 70% of its value between November 2021 and June 2022, Bitcoin ends 2023 with a bang.

This performance comes as a reward for the patience and resilience of long-term investors, who have held on despite an unfavorable macroeconomic context (soaring inflation, restrictive monetary policies, risk of recession). Some analysts also see it as a tangible sign of the increasingly widespread adoption of cryptos by the general public and institutional investors.

Over the year, BTC has shown a 140% increase compared to the US dollar. Most notably, in just one month, its value has jumped by nearly 50% thanks to a wave of euphoria.

The specter of a Bitcoin ETF looming over the USA

The other catalyst behind this spectacular spring rally could be the imminent approval of a Bitcoin spot ETF (exchange-traded fund) in the United States. No fewer than 13 firms have submitted a request to the American stock market watchdog, the SEC.

Among the applicants, there are giants like asset management behemoth BlackRock and Grayscale. According to Bloomberg ETF, there is a 90% chance that these ETFs will be approved by January 10, 2024.

Standard Chartered Bank even estimates that Bitcoin could break the mythical $100,000 barrier by the end of 2024, driven by the “earlier than expected” introduction of these index funds.

Recently, the surge above $40,000 triggered a nasty purge among short sellers, with $78 million of short positions liquidated in a matter of hours.

Now, all eyes are on the $50,000 threshold. According to analysis by Santiment, this mark could be achieved as early as January 2024 if the confirmation of the ETFs provided an additional boost to the market.

Regardless, the end of the year is shaping up to be exciting with heightened hopes and persistent fears (FOMO and FUD). And the upcoming approval of a Bitcoin ETF across the Atlantic could serve as a launchpad to new records. The $100,000 goal by 2024 has never seemed so within reach for the crypto star. Bitcoin’s return to grace may only be just beginning.