Bitcoin briefly climbed above $45,000 on New Year's Day, a development not seen since April 2022 and reminiscent of the rollercoaster ride in January of that year, when the price of the world's leading cryptocurrency rose three times above the threshold in just a few days swayed. intertwined with losses of up to $36,000.
According to Coingecko, Bitcoin was last at $45,000 on April 5, 2022 and fell as low as $15,742 on November 9. Its market capitalization on New Year's Day exceeded $836 billion and recorded a trading volume of $22 billion.
At the time of writing, BTC is up over 171% compared to this time last year, over 13% over the last month, and over 5% on this day. Bitcoin started 2023 with a price of less than $17,000 per coin.
This year, it appears to be the long anticipation of the SEC's approval of a Bitcoin spot ETF that is driving much of the bullish momentum. But many deadlines have passed without formal action being taken on numerous pending spot ETF offering applications. Could 2024 finally be the year it happens? And will the price of Bitcoin rise or fall?
Large round numbers like $45,000 have no particular meaning other than that they represent psychological barriers for investors. Reaching such a value tends to increase trust, which leads to more trading and could then create a flywheel effect – at least that's what Bitcoin holders hope.
Broadly speaking, this means Bitcoin is getting closer to last year's high, when it started the year at just under $50,000. BTC remained mostly above $40,000 for a few months, but fell off a cliff after the algorithmic stablecoin TerraUSD collapsed, triggering a wave of liquidations and bankruptcies.
As the world's largest and oldest cryptocurrency continues its rise, its overall value as measured by market capitalization continues to rise. According to CompaniesMarketCap, Bitcoin, at $855 billion, recently surpassed Elon Musk's Tesla in terms of market capitalization after crossing the $750 billion mark. Meanwhile, Warren Buffett's Berkshire Hathaway Inc., with a market cap of $774 billion, and Meta Platforms (formerly known as Facebook), with a market cap of $815 billion, were also swapped.
Edited by Ryan Ozawa.
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