Bitcoin Crosses $45,000 Mark on New Year’s Day: What’s Driving the Rally?
Bitcoin, the world’s leading cryptocurrency, made a remarkable start to the year by crossing the psychologically important $45,000 mark on the first day of 2024. This surge represents an impressive 5.7% gain over a 24-hour period. Ethereum and Dogecoin also saw gains of over 3% during the same time frame.
This move by Bitcoin is significant as it is the first time since April 2022 that BTC has surpassed the $45,000 mark. The rally was fueled by the buzz surrounding the notification of spot Bitcoin exchange-traded funds (ETFs). According to Reuters, asset managers who have applied for ETF approval could receive notifications of approval on Tuesday or Wednesday, with a possible launch date of January 10.
The anticipation of spot Bitcoin ETFs has been a driving force behind recent rallies in the cryptocurrency market. A total of 14 asset managers are hoping for SEC approval, according to the report. This development has generated optimism among investors, contributing to the upward movement in prices.
The cryptocurrency world is currently filled with bold predictions for Bitcoin’s trajectory. Financial guru Mark Mobius predicts that Bitcoin will reach the $60,000 mark by 2024. Antoni Trenchev has an even loftier prediction, foreseeing Bitcoin reaching $100,000 this year.
While cryptocurrency markets were experiencing gains, stock futures remained flat at the time of publishing. Founder of Vital Knowledge, Adam Crisafulli, noted that the markets were due for a 1-3% pullback in order to consolidate. Despite this, he believes that the rally could continue.
In terms of the top gainers in the cryptocurrency market over the past 24 hours, Sei (SEI) experienced a 31.9% gain, followed by Mina (MINA) with a 19.51% gain, and The Graph (GRT) with an 18.46% gain.
Cryptocurrency trader Michaël van de Poppe believes that 2024 will be a great year for cryptocurrencies. He highlighted the potential approval of spot ETFs, the halving of Bitcoin, the beginning of the Altcoin bull market, and the approval of an Ethereum spot ETF as key factors that could drive the market.
Bitcoin maximalist Max Keiser reacted to Bitcoin hitting $45,000 by confidently stating, “I told you so!” He shared a video featuring El Salvador President Nayib Bukele celebrating the milestone by playing the drums.
Hayden Hughes, co-founder of Alpha Impact, noted that there is a fear of missing out on Bitcoin among some traders in the U.S. and Europe ahead of the approval of spot ETFs. According to Bloomberg, these traders have already started buying Bitcoin early on New Year’s morning.
Overall, the cryptocurrency market has started the year with significant gains, driven by the anticipation of spot ETF approval and positive market sentiment. With bold predictions and various catalysts on the horizon, 2024 holds promise for further growth and development in the cryptocurrency space.
