BTC Off To A Strong Start In 2024 As Its Price Continues To Rise

Bitcoin (BTC) surpassed the $45,000 mark on January 1st, 2024, a level not seen since April 2022. This mirrors the volatility of January that year when the value of the flagship cryptocurrency fluctuated above this threshold multiple times, interspersed with drops as low as $36,000. As of the time of this writing, BTC stands at just above $45,300.

BTC ETF Seemingly On The Horizon

The anticipation for the potential approval of a Bitcoin Spot ETF seems to be a major driving force behind the current upward trend. However, despite numerous deadlines passing without formal action on pending ETF applications, many are wondering if 2024 will indeed be the year which sees the ETF finally be approved or will it be more of the same with the SEC delaying everything once again.

Conversely, everyone is waiting to see what the approval of the ETF will mean for the price of BTC, including both short and long term consequences. Round figures like $45,000 therefore hold significance as psychological barriers for investors. Achieving such milestones tends to boost confidence, encouraging more trading and potentially triggering a positive feedback loop, a prospect eagerly awaited by BTC holders.

BTC Continues Its Domination

In the broader context, Bitcoin is nearing its previous high when it began just below $50,000. Although it remained mostly above $40,000 for a few months, a significant drop occurred after the collapse of the algorithmic stablecoin TerraUSD led to a wave of liquidations and bankruptcies. The infamous FTX fiasco did not help matters either.

Still, as the rally continues, the market capitalization of BTC continues to expand, surpassing $855 billion and even overtaking Tesla, which has a market capitalization below $750 billion, according to CompaniesMarketCap. Additionally, Bitcoin now also exceeds the market capitalization of Berkshire Hathaway Inc. at $774 billion and Meta Platforms (formerly Facebook) at $815 billion.