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In recent times, the crypto sphere faced a slew of troubles, including collapses, legal battles, and major figures like FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao facing criminal charges. With Zhao stepping down and a hefty settlement with the U.S. DOJ, some view these cases as pivotal in finally resolving the market’s lingering issues.
Despite this, the price of Bitcoin soared above $40,000, marking a significant rally amid hopes of U.S. interest rate cuts and expectations for the approval of U.S.-stockmarket traded Bitcoin funds. This surge in value coincides with key economic events in the U.S. this week.
Key Economic Events
The Kobeissi Letter, a macroeconomics publication, has compiled a list of key economic events for the United States starting on December 4. On Tuesday, the Institute of Supply Management’s Non-Manufacturing Purchasing Managers’ Index will provide a complete perspective of the sector’s economic situation. Thursday’s Initial Jobless Claims: Expect a modest uptick over last month. Finally, Friday’s Consumer Sentiment Data & November Jobs Report: Consumer sentiment is expected to rise slightly, suggesting optimism about finances and the economy. Whereas, critical insights will come from the November jobs data.
Can BTC Topple Above $100K?
The market’s anticipation of a spot Bitcoin ETF approval on January 5th – 10th is driving the crypto market’s momentum, leading to a total market capitalization rise to $1.59 trillion, nearing its peak of $3.08 trillion last November. Bitcoin’s recent surge to $40,800, the highest since April 2022, signifies its 9% increase over the past week and steady growth since September.
Some bold predictions for Bitcoin in 2024 are also circulating. Standard Chartered forecasts a potential rise to $100,000 by then, driven by ETF approvals. Bitcoin has more than doubled in value this year, with most increases coming in recent weeks as speculators speculated about a U.S. ETF that tracks the cryptocurrency’s price. Meanwhile, Matrixport anticipates a climb to $63,140 by April 2024 and a whopping $125,000 by the year’s end. These projections hint at significant growth, potentially marking a 160% to 225% surge from current prices.
Impact of Lower Interest Rates on Bitcoin
On the positive side, Fed Chair Powell’s comments hint at a softer approach to rate hikes, the market expects the Fed to maintain rates in December and possibly cut them by March 2024. Despite concerns over high inflation and a robust labor market, the potential for lower interest rates positively influences Bitcoin’s prospects. This contrasts with its previous record high of nearly $69,000 in 2021, which declined amid rising interest rates, industry turmoil, and regulatory issues, including Binance’s recent money laundering allegations and a $4 billion fine.
The recent developments in crypto space and Bitcoin’s rise above $40,000 give the crypto community hope for more growth. Can we see a new ATH Soon?
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