Bitcoin Starts New Year With A Bang By Surging Above $45K

On 2nd January 2024, the price of Bitcoin crossed above $44,965 at 9:25 AM Hong Kong time. This is one of the highest price rises since April 2022. U.S. Securities and Exchange Commission may notify asset managers as early as either Tuesday or Wednesday. Bitcoin’s performance in 2023 was impressive and many predict that this year will also be favorable for the cryptocurrency. Therefore, it is crucial to understand the factors responsible for Bitcoin’s growing popularity.

Reasons Behind Bitcoin’s Upsurge

Bitcoin has been performing exceptionally well in recent times. Many experts continue to predict that this year 2024 will also be highly favorable and they give the following reasons for it.

US Federal Reserve’s Interest Rates

The US Federal Reserve is cutting its interest rates in 2024. Bitcoin ETF will eventually be approved. Both these factors are driving up the price of Bitcoin because it is increasing the confidence of the masses. The rise in Bitcoin prices invariably indicates that public sentiment favors the cryptocurrency.

Approval of Spot Bitcoin ETF

Many investors are awaiting approval for the first US spot bitcoin exchange-traded fund. This may be driving the rise of its prices. The Securities and Exchange Commission is discussing approving Bitcoin ETFs. The US investors may be permitted to buy Bitcoin futures ETFs to sell or buy assets upon an agreed price. Therefore, many are anticipating that this move can invite more investment. 

Strong Regulatory Framework by The US 

The credibility of Bitcoin is increasing among the ordinary masses. One reason behind this is that the US tops the list as far as global crypto regulations are concerned. Many state governments in the US are passing laws with tough penalties for crypto-related scams and unlawful activities. Invariably, these steps are reinforcing the confidence of many potential investors. Meanwhile, the US at the federal level is trying to bring in regulations and frameworks to control or strongly penalize the unlawful use of cryptocurrencies. The recent examples of the US government taking action against Binance are proof that the government wants to make cryptos more popular by punishing those who violate laws. 

Asset Management Companies Favoring Bitcoin

Some well-known asset management companies are currently favoring Bitcoin after realizing its profitable potential. Those include VanEck, BlackRock Asset Management, Fidelity, Bitwise Investment Advisers, Wisdom Tree Investments, and Invesco Limited. All these companies have submitted new documents to regulators for approval. They have ensured that arrangements will ensure better trading.

Also Read- Major Benefits of Bitcoin ETF

In Conclusion

Bitcoin’s price surge on the second day of 2024 is creating a lot of enthusiasm among investors. Many factors are indirectly favoring its price rise. Experts are anticipating that BTC spot ETF may open many avenues for crypto investment and lead to further popularization of Bitcoin. Expats such as Scott Melker are even anticipating that once the SEC approves the ETF, it may cross the $54K mark. Furthermore, the enforcement of standard crypto regulations by the US may also positively affect its prices.