For the first time in nearly two years, bitcoin’s price has exceeded $41,000.
The price of the most popular cryptocurrency reached $41,600 on Monday (Dec. 4), Coindesk reported, noting this was the first time bitcoin had gotten to that level since the collapse of Terra in April 2022.
According to the report the price of ether also rose to $2,200 — its highest since May of last year — while gold prices also reached a record high in early trading in Asia due to “dovish” comments by Federal Reserve Chairman Jerome Powell.
“The market is increasingly expecting a rate cut in the coming year, and investors are increasingly bullish on the outlook of Bitcoin ETF applications by some of the biggest names in asset management,” Metalpha senior analyst Lucy Hu wrote in a note, per the report. “This is an official statement of a bull run, and the price could see more upticks in the coming weeks.”
The price of bitcoin has been steadily climbing in recent weeks, leading a number of observers to remark that the crypto market could be turning a corner in terms of regulators’ attitudes.
Bitcoin surged by 28% in October — its largest monthly increase since January — driven by expectations that the U.S. Securities and Exchange Commission (SEC) might finally give the greenlight to exchange-traded funds (ETFs) directly investing in the cryptocurrency after years of consideration.
“There are many crypto companies that are helping build the crypto economy and change our financial system globally,” Brian Armstrong said.
“But many of them are still small startups. I think that regulatory clarity is going to help bring in more investment, especially from institutions.”
However, a report last month by JPMorgan Chase questioned some of the new enthusiasm for the crypto market, arguing that crypto ETFs are more likely to attract money from existing bitcoin products than new funds. And then there’s the matter of regulation.
“U.S. crypto industry regulations are still pending and we do not believe U.S. lawmakers would shift their stance … especially with the memories from the FTX fraud still fresh,” the bank wrote.