The price of Bitcoin, the leading digital cryptocurrency, has soared past the $45,000 mark for a single unit for the first time in about two years, buoyed by expectations of the approval for exchange-traded funds (ETFs) to invest directly in digital currencies.
Bloomberg News reported on Tuesday that the world's largest cryptocurrency surged by 5.2% to reach its highest level since April 2022, trading at $45,443 per unit by 7 AM New York time. Other major cryptocurrencies also saw price increases, with Ethereum, the world's second-largest digital currency, rising by 4.1% in the morning.
Since the beginning of December last year, Bitcoin's price has increased by 20%, ahead of the Securities and Exchange Commission's (SEC) deadline for a decision on Bitcoin ETF investments set for January 10.
Hayden Hughes, co-founder of the online trading platform Alpha Impact, commented that some traders in the United States and Europe are apprehensive about the imminent approval of ETFs investing in digital currencies, which triggered a wave of Bitcoin purchases from the morning of the new year's first day.
In today's options trading, Bitcoin's price hovered around $50,000 per unit, bolstered by optimism regarding the ETF investment decision.
The recent surge in Bitcoin's value reflects the growing integration of cryptocurrencies into mainstream financial markets. The anticipation of ETFs potentially pouring significant institutional investment into Bitcoin has been a catalyst for this latest rally.
Cryptocurrencies have increasingly become attractive to investors looking for high-return, albeit high-risk, assets. Bitcoin's ascendancy to a 21-month high demonstrates the volatile yet compelling nature of the digital asset market. With the SEC's decision on the horizon, the financial sector is poised for potential shifts in investment strategies towards cryptocurrencies.
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