On Wednesday, Bitcoin approached the significant $44,000 mark, marking its longest streak of continuous gains since May.
The cryptocurrency’s surge is partly due to anticipated changes in U.S. monetary policy. The market leader in cryptocurrencies, Bitcoin, increased for six days until Tuesday.
It gained about 16% during this period, reaching a high of $44,491. However, it later saw a slight decrease.
Since 2023, following last year’s downturn in cryptocurrencies, Bitcoin’s recovery has been remarkable, achieving a 163% increase.
From mid-September, Bitcoin’s value has risen almost 80%. This impressive growth quickly pushed it past the $30,000 and $40,000 thresholds.
Speculation also played a role in Bitcoin’s rise. Market participants believe the U.S. might soon approve its first Bitcoin Exchange Traded Funds (ETFs).
In June, BlackRock applied to the U.S. Securities and Exchange Commission (SEC) to launch such a product.
This move indicates a potential wider acceptance of cryptocurrencies as a legitimate asset class.
Market analyst Tony Sycamore from IG Australia noted that the ETF news has likely been factored into Bitcoin’s price.
He emphasized cryptocurrencies’ heightened sensitivity to changes in Federal Reserve policies compared to other asset classes.
Bitcoin’s current trend is overshadowing worries that its value increase might be excessive.
Other smaller digital currencies, such as Avalanche (AVAX) and Dogecoin (DOGE), are also experiencing growth.
In South Korea, the optimistic trend was evident. Bitcoin traded about 4% higher than the global price on Upbit and Bithumb exchanges on Wednesday.
This “kimchi premium” phenomenon resurfaced, reminiscent of the crypto boom during the pandemic.
In Abu Dhabi, Phoenix Group Plc, a crypto mining hardware dealer, experienced a 35% increase in its stock value at its debut.
This marks the first crypto-related listing in the Middle East.
El Salvador has profited from Bitcoin investment
President Nayib Bukele stated in El Salvador that the country has profited from its Bitcoin investments. He announced this during his campaign for reelection after resigning last week.
Another positive influence on Bitcoin is next year’s upcoming “halving” event. This event, which happens every four years, will cut the token rewards for miners in half.
It aims to limit Bitcoin’s total supply to 21 million tokens. Bitcoin has historically reached new highs after each halving.
Zach Pandl from Grayscale Investments remarked that both micro and macro factors are aligning in Bitcoin’s favor.
As of 9:30 AM Brasília time, Bitcoin’s trading price stood at $44,007.03. It previously hit a peak of about $69,000 in November 2021.