As we step into 2024, Bitcoin is making waves in the financial world, breaking past the $45,000 barrier for the first time in almost two years. This remarkable rally saw the cryptocurrency leap over 5% on Monday, with its momentum carrying it further to a high of $45,565 by Tuesday.
This surge in Bitcoin’s value is riding on a wave of growing investor optimism, especially with the looming deadline of January 10 for the Securities and Exchange Commission (SEC) to potentially approve a much-anticipated spot Bitcoin exchange-traded Fund (ETF). Such approval could mark a significant milestone in the integration of cryptocurrency into mainstream financial markets.
Adding to the excitement is the anticipation of the upcoming Bitcoin halving event, slated for April. This event, which takes place approximately every four years, involves a reduction by half of the Bitcoin awarded to miners. Historically, Bitcoin has consistently hit new highs following its past three halvings, fueling speculations among industry experts that the token might soar to the $100,000 mark post this year’s event.
Joe Kelly, CEO of Unchained, a leading crypto financial services firm, provided a conservative yet optimistic outlook in a recent analysis. Kelly suggests that if Bitcoin maintains a price of around $30K leading up to the halving, even a modest 250% increase post-halving — a percentage he deems conservative compared to previous events — could potentially elevate Bitcoin’s value to around $105K.
The ongoing rally is not just a boon for Bitcoin holders but has also positively impacted related stocks. Firms like MicroStrategy, Marathon Digital, and Coinbase, known for their links to cryptocurrency, have seen their shares skyrocket, posting triple-digit returns in 2023. On Tuesday alone, these companies witnessed impressive gains of 8%, 13.4%, and 2.1% in their stock values, respectively.
Bitcoin’s performance in 2023, with a gain of over 150%, and its continuing rise into 2024, underscores the growing interest and confidence in cryptocurrencies. As investors keenly watch the SEC’s decision and the upcoming halving event, Bitcoin’s journey could well redefine the landscape of digital currencies and their role in the global financial ecosystem.