In a turn of events that’s got everyone from Wall Street to your mate Dave talking, Bitcoin has just blasted past the $40,000 mark.
This is the first time the behemoth of cryptocurrencies has hit these dizzying heights since back in April 2022, and the internet is buzzing about the news.
But why is it such a big deal?
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Early Monday, Bitcoin's price soared to a jaw-dropping $42,089, bringing on what analysts are calling a seismic shift in the crypto world.
This isn't just a small bump - this is a huge surge which has meant Bitcoin's value has skyrocketed around 50% in less than two months.
The reason behind the recent spike?
Word on the street is that the United States Federal Reserve might be done hiking up interest rates, with whispers of a cut coming in the new year. Also, rumors are swirling about US regulators possibly giving the go-ahead to a Bitcoin exchange-traded fund (ETF).
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For those not in the know, an ETF is a type of investment that bundles together various assets like stocks or bonds, and its shares can be bought and sold on the stock market like individual stocks.
Back in October, the world’s largest asset manager, BlackRock, listed a collection of ETFs called iShares and there’s an expectation that US regulators may soon approve it. This is what’s helping to push up valuations, according to Reuters, since it’s not just big news for Bitcoin holders.
As a result, the spike in the currency’s value has also sent shares of cryptocurrency-related companies and ETFs sky-high.
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For example, Ethereum, the cool younger sibling of Bitcoin, isn't far behind. It's also seen a massive surge, climbing past $2,200 for the first time in 18 months.
This Monday surge isn’t just any old price bump. It’s a major deal, especially considering the crypto carnage we witnessed last year with the TerraUSD and Luna coin collapse when $40 billion vanished from the crypto market. And let’s not forget the drama with Singapore’s Three Arrows Capital and Celsius going belly up.
In short, Bitcoin is making a comeback that’s turning heads and raising eyebrows. Whether you’re a crypto guru or just crypto-curious, this is one rollercoaster you’ll want to keep your eyes on. Stay tuned, folks, because if there’s one thing we know about Bitcoin, it’s that it’s full of surprises.
So what will happen next? Well, rumor has it that the Securities and Exchange Commission (SEC) - the US government oversight agency responsible for regulating the securities markets and protecting investors - might approve multiple spot bitcoin ETFs as early as January.
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Investors are banking on this and expecting traditional financial investors, like banks or investment funds, to invest large amounts of money into the market as a result.
Regardless, reports suggest that we can expect Bitcoin's recent upswing to be more than a fleeting moment.