Bitcoin Price surged to a nearly 20-month high, reaching over $42,000 on Monday, buoyed by fervent investor speculation of potential interest rate cuts in the coming year. This surge in the cryptocurrency is also attributed to optimism regarding reduced regulatory scrutiny. Gold mirrored the bullish trend, rallying up to 3% to hit an all-time high of $2,135 per troy ounce. The optimism in both Bitcoin and gold is linked to growing expectations that the US Federal Reserve will cut borrowing costs, following recent remarks by Fed Chair Jay Powell. Investors are betting on a rate reduction, possibly as early as March. The lower yields on ultra-safe US Treasury debt have made alternative assets more appealing to investors, fostering a broader positive sentiment across various asset classes, including stocks and cryptocurrencies. Bitcoin Price momentum is further fueled by the resolution of high-profile criminal cases against industry figures, providing a sense of closure for institutional investors. Ethereum, the second most traded cryptocurrency, also experienced an 8.3% rise to $2,260. Investors are optimistic about the potential approval of a bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) in the coming weeks. The anticipation of a bitcoin spot ETF approval has been a long-standing market narrative, seen as a transformative move that could attract institutional investors. The SEC has faced increasing pressure to approve such ETFs, with major financial players submitting filings for bitcoin-related ETFs. Speculation around ETF approval is expected to influence crypto market behavior, with investors keen on the potential impact of institutional participation in the ecosystem. Source thedailycourierng news
