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Bitcoin Zooms Past $45k in 2-Year High Fueled by ETF Optimism

Bitcoin Zooms Past $45k in 2-Year High Fueled by ETF Optimism

Crypto news with FunderPro

Key Takeaways

  • Bitcoin reaches new heights as the buzz surrounding an ETF approval loudens
  • The Federal Reserve due to release meeting minutes from their December gathering

Bitcoin’s Explosion

Bitcoin kicked off 2024 with a bang, reaching a peak of $45.8k on Tuesday before settling down at the $42k mark. Bolstered by a 5.5% increase this week alone by exchange-traded fund (ETF) optimism, the original coin solidifies its role as the frontrunner, further cementing its position as the largest cryptocurrency by market cap. 

Propelling the digital asset, investors are holding their breath in anticipation of the Securities and Exchange Commission’s (SEC) decision to allow a spot BTC ETF. The deadline for the much-awaited greenlight closes on January 10th, sending market participants rushing toward the crypto in an effort to position themselves ahead of any potential surge. 

Major investment players Grayscale and BlackRock are among the dozen applicants awaiting approval from the federal agency. Should the SEC go ahead and approve all, or some, of the ETF applications, it would open the floodgates for investors who typically steer clear of cryptocurrency investments by creating a safer way to add a digital currency to their portfolios via regulated institutional brokers.

Central Bank Insights

Looking at the broader scope of things, the Federal Reserve is due to release the meeting minutes from its December get-together, when the central bank decided to maintain its key interest rate at 5.25% – 5.50%. 

That being said, it looks as though policymakers are poising themselves for three potential rate cuts in 2024, by economist’s predictions. The minutes, to be released at 2 p.m. EST today, will provide further clues into the Fed’s stance on the current state of the US economy and any future plans.

For our traders, it will be imperative to closely monitor Bitcoin’s developments. It’s abundantly clear that crypto is here to stay, and if an ETF is approved by the end of January, it is likely to push the coin to new heights. Take note of the ongoing events surrounding the digital asset, as it looks like Bitcoin is shaking things up in 2024.