The Bitcoin price has surged by over 133% so far this year, reaching its highest point yet, as investors consider Federal Reserve Chair Jerome Powell’s statements indicating that interest rates will remain unchanged.
The largest cryptocurrency by market value continued its ascent on Friday, reaching $39,000 on the Coinbase cryptocurrency exchange, its highest value since May 2022, just before the cryptocurrency sector was shaken and prices began a gradual decline due to the collapse of the Terra ecosystem.
As 2023 draws to a close, speculators are focusing on the possibility of Bitcoin reaching $40,000, as the leading digital asset has more than doubled in value over the year.
Bitcoin’s surge of over 133% so far this year has outpaced gains in many other traditional sectors as investors turn to riskier assets.
The prevailing optimism among traders and the cryptocurrency community as a whole that the U.S. Securities and Exchange Commission’s imminent approval of the first exchange-traded fund directly linked to Bitcoin will lead to higher prices.
The $40,000 Bitcoin price path has been cleared due to news suggesting that U.S. Federal interest rates may remain unchanged until at least 2024.
Bitcoin nearly shed $39,000, according to on-chain analytics company, with sentiment believing that the Bitcoin path has already been paved to $40,000.
This move, instead of alternative currencies, represents, according to sentiment, “just enough necessary fear to sustain the price’s upward momentum.”
Sentiment noted that as interest in alternative currencies waned, Bitcoin’s social dominance increased in just one month.
At the time of writing this report, the Bitcoin price has risen by 0.78% over the past 24 hours to $38,782, reaching its highest levels during the day at $38,848 in Saturday’s trading session.
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