Bitcoin Hits Highest Price of the Year
Bitcoin, the world’s largest cryptocurrency, soared to its highest price so far this year on Friday, as investors took on more risk ahead of comments from Federal Reserve Chair Jerome Powell, which could give guidance on whether the US is closer to lowering interest rates.
Bitcoin’s Surge
Bitcoin rallied as much as 2.87% to a high of $38,834 on Friday, marking its highest value since May 5 of last year. This spike in price comes just before the collapse of the TerraUSD stablecoin ecosystem, which rocked the sector and led to a steady decline in asset prices.
Other Digital Assets
Prices of other digital assets tracked Bloomberg, such as Ether and Solana, were also up more than 2% as Bitcoin’s jump sent positive ripples throughout the cryptocurrency market.
Market Reaction
European stocks also advanced and the dollar fell, with investors awaiting Powell’s speech at Spelman College in Atlanta. US futures edged higher and Treasuries were steady as investors sought to gauge whether November gains across asset classes still have further room to grow.
Expert Opinion
Markus Thielen, head of research and strategy at Matrixport, expressed confidence in the macro environment serving as a robust tailwind for crypto. He anticipated that another decline in inflation, combined with geopolitical crosscurrents and monetary support, should push Bitcoin to new highs in 2024.
Cryptocurrency-Linked Stocks
Shares of cryptocurrency-linked stocks also rose in US premarket trading on Friday. Stocks of digital asset exchange Coinbase Global Inc were up 3.5%, while those of miner Marathon Digital Holdings rose 4%.
Bitcoin’s Year-to-Date Performance
Bitcoin has risen more than 133% so far this year, outperforming gains in many other traditional sectors as investors have favored exposure to riskier assets.
Optimism for ETF Approval
Traders are optimistic that the US Securities and Exchange Commission might soon approve the country’s first exchange-traded fund tied directly to Bitcoin. Additionally, a settlement between US authorities and crypto exchange Binance Holdings Ltd. last month has further soothe nerves in the market.
Final Thoughts
As Bitcoin continues to reach new heights, the cryptocurrency market remains a source of optimism for many investors. With the potential for interest rate cuts and other favorable macroeconomic conditions, many are hopeful for continued positive performance in the cryptocurrency sector.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.
