The price of Bitcoin (BTC) surged over the weekend is now trading right around $42,000 U.S., its highest level since May 2022.
The largest cryptocurrency by market capitalization continues to ride a wave of positive momentum as markets price in a series of interest rate cuts throughout 2024 and investors bet that American regulators will approve Bitcoin exchange-traded funds (ETFs).
Bitcoin’s price was up 6% in overnight trading and changing hands at just above $42,000 U.S. early on Dec. 4. The digital asset’s price was at $38,000 U.S. on Dec. 1 and at $16,000 U.S. a year ago.
In all, Bitcoin’s price has risen 145% in the last 12 months, outpacing just about every other asset class, including equities.
Bitcoin’s price has rallied hard since mid-October as investor expectations grow for the approval of crypto ETFs by the U.S. Securities and Exchange Commission (SEC).
There is also a move back into riskier investments such as cryptocurrencies on expectations that central banks will begin cutting interest rates in the year ahead.
ETFs would allow investors access to the price movements of the cryptocurrency without having to hold physical Bitcoin, potentially attracting a new wave of investor capital.
Ethereum, the second largest crypto, has also reached an 18-month high of $2,264.73 U.S. The price of Ethereum is now up 77% over the past 12 months.
However, both Bitcoin and Ethereum remain below their all-time highs reached in November 2021 of $69,000 U.S. and $4,868 U.S. respectively.
