Crypto Experts Weigh-In on Factors that Propelled BTC to Trade Above $40,000, a First Since May 2022

Bitcoin created its last all-time high of over $68,000 (roughly Rs. 56.6 lakh) in November 2021.

Crypto Experts Weigh-In on Factors that Propelled BTC to Trade Above $40,000, a First Since May 2022

Photo Credit: Reuters

Bitcoin’s market dominance, at the time of writing, stood at 52 percent

  • Bitcoin surge began in October this year
  • Before October 2023, BTC was mostly trading under $27,500
  • The US SEC can add to the bullish BTC run by approving spot ETF requests

For the first time in nineteen months, the value of Bitcoin exceeded the crucial mark of $40,000 (roughly Rs. 33.7 lakh) in terms of its pricing on Monday, December 4. The oldest cryptocurrency, that created its last all-time high of over $68,000 (roughly Rs. 56.6 lakh) in November 2021, had traded within the range of $26,000 (roughly Rs. 21.6 lakh) and $27,500 (roughly Rs. 22.9 lakh) for most months since May 2022.

Bitcoin finally launched into the upward curve earlier this October, because CoinTelegraph mistakenly ran a false story claiming that a spot BTC ETF was approved in the US – triggering immediate inflows into the crypto asset from investors. As of October 10, BTC was trading at $28,175 (roughly Rs. 23.4 lakh).

Within 24 hours, short positions on Bitcoin contracts worth $54 million (roughly Rs. 450 crore) were liquidated, significantly weakening the bearish forces. Members from the crypto industry, for now, seem elated at this bullish sentiment that currently envelops Bitcoin against market volatility affecting smaller altcoins.

“Bitcoin has experienced a substantial surge which represents a year-to-date peak for Bitcoin, boasting a remarkable 140 percent rise since the beginning of the year. The current uptrend is largely attributed to growing expectations that the SEC might approve a spot Bitcoin ETF in January. At the time of writing, Bitcoin is trading at $40,580 (roughly Rs. 33.8 lakh),” the trade desk at Zebpay told Gadgets360.

Asset management firm BlackRock was the first big company to file seeking permission to launch a spot BTC ETF in October. BlackRock's iShares ETF filing initiated a wave of similar submissions by other asset managers like WisdomTree, Invesco, and Fidelity, promising potential investment inflow.

The reason why ETFs (exchange traded funds) make for a lucrative investment tool for crypto outsiders is because they let investors to invest in BTC via traditional market exchanges rather than being limited to cryptocurrency exchanges.

As of now, the US Securities and Exchange Commission (SEC) has not given its verdict on ETF filings concerning BTC and ETH because it may risk the financial safety of investors. It is however anticipated that by January 2024, the SEC will give more clarity on the subject to applying crypto players.

In conversation with Gadgets360, Shivam Thakral, CEO of BuyUcoin pointed out another reason that may have nudged BTC to spike in value these past days.

“The US Fed is expected to cut the interest rate in 2024 and that may boost the liquidity in the market, we may be witnessing early signs of the same. The US Committee on Financial Services calling a December 8 hearing on digital assets may lead to a strong regulatory framework focussing on investor protection, which could prove highly beneficial for the broader digital asset market,” Thakral noted.

As per market analysts, given the potential for a recession in the US economy, fund managers are predicting an 80 percent consensus level for a trend of interest rate reduction in 2024, marking the highest consensus level ever recorded.

“The crypto market has already factored in this positive news. The market may undergo an overall accelerated upward revision. Furthermore, a new asset category within the Bitcoin ecosystem, ORDI, surged over the weekend, indicating a strong speculative sentiment in the market,” Ryan Lee, Chief Analyst of Bitget Research pointed out to Gadgets460.

With expectations of a forthcoming rate cut and growing confidence in Bitcoin ETF applications, traders are actively placing top-side options, betting on Bitcoin's potential ascent to $45,000 (roughly Rs. 37.4 lakh) by March 2024.

Bitcoin's market dominance, at the time of writing, stood at 52 percent as per CoinMarketCap.

Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges


For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Bitcoin, ETF, Crypto Market
Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at More
iPhone Li-Ion Battery Cells to Be Made in India by Japan’s TDK, Says MoS IT Rajeev Chandrasekhar
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us


© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »