Bitcoin Price Soars Above $45,000 for First Time Since April 2022

By Jace Dela Cruz

Jan 02, 2024 03:34 AM EST

Starting 2024 with positive momentum, Bitcoin surged above $45,000 on Tuesday, marking its highest value since April 2022.

According to Reuters, the world's biggest cryptocurrency demonstrated a robust performance in 2023, registering a 154% gain, its strongest yearly performance since 2020. Bitcoin has reached a 21-month peak of $45,532.

Bitcoin was reportedly last up 2.5% at $45,318. However, it remains far below its record high of $69,000 in November 2021. 

(Photo : VALERIA MONGELLI/AFP via Getty Images)
This photograph taken on December 7, 2022 shows the bitcoin logo on a smart phone in a greenhouse heated with bitcoin miners near Amsterdam. - A Dutch flower growing business is using Bitcoin mining machines to warm their greenhouse in order to grow tulips and other flowers for the export market.

What's Next for the Bitcoin Market?

Ether, the cryptocurrency linked to the Ethereum blockchain network, observed a 1.45% uptick, reaching $2,386 on Tuesday. It reportedly surged 91% in 2023.

Investor attention is primarily focused on the potential approval of a spot bitcoin ETF by the US Securities and Exchange Commission (SEC). The approval would reportedly open the bitcoin market to millions of investors and draw billions in investments.  

The SEC has previously rejected numerous applications for spot bitcoin ETFs, expressing concerns about the susceptibility of the cryptocurrency market to manipulation. 

However, recent developments suggest a shift in regulators' stance, with expectations of a decision on the 13 proposed spot bitcoin ETFs anticipated in early January.

The possibility of major central banks reducing interest rates in the coming year has also contributed to the positive trajectory of cryptocurrencies. It has played a pivotal role in dispelling the negativity that loomed over crypto markets after the collapse of FTX and other crypto-related businesses in 2022. 

READ ALSO: JPMorgan Chase Says Ethereum Will Outperform Bitcoin, Other Cryptocurrencies in 2024 

Optimistic 2024 Outlook for the Crypto Market

Jupiter Zheng, partner of liquid funds at HashKey Capital, told Reuters that significant growth in the crypto market is expected in the coming year. 

He said factors influencing this growth include the "influx of investment funds from spot ETFs, Bitcoin halving, and a more accommodative monetary policy both in the United States and worldwide."

READ MORE: JPMorgan Chase Reportedly Plans to Outsource $500 Billion Custody Business in Hong Kong, Taiwan

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