The value of bitcoin broke above the $43,000 level on Monday because the cryptocurrency prolonged its recent gains.
Bitcoin was last trading higher by 3% at $43,102.26, in line with Coin Metrics. Bitcoin has fought back into the green for the yr following steep losses after the long-awaited approval of spot bitcoin ETFs. Bitcoin closed out 2023 across the $42,000 level. It’s now up about 2% for 2024, per FactSet.
Bitcoin rises above $43,000 Monday
Ether rose nearly 2% to $2,301.89. Solana’s SOL token and Cardano’s ADA led the crypto market gains. They rose 6% and 4%, respectively.
Bitcoin ETFs have been the largest driver of the cryptocurrency’s price motion in recent weeks. Outflows from the Grayscale Bitcoin ETF had upset some investors, who shook off those worries last week as they appeared to taper off.
While ETFs are still the important driver, they are not the just one. Investors are still watching how macro influences impact price. Specifically this week, the Federal Reserve’s policy meeting will begin Tuesday.
Investors are nearly certain the central bank will keep rates regular, but they’re hoping for a touch from the Fed that it is going to begin cutting rates soon…perhaps at the same time as soon as March. Lower rates could boost overall risk-taking and the tech sector, each positive aspects for bitcoin.
“The speed environment continues to be working in bitcoin’s favor,” said Callie Cox, analyst at investment firm eToro. “Inflation has come all the way down to the Fed’s goal, and so they have a powerful argument to chop in the following few months.”
“Bitcoin has also thrived on Fed days with inflation,” she added. “It’s outperformed the S&P 500 in nine out of the last 12 Fed days counting back to July 2022.”