On New Year’s Day, Bitcoin reached a milestone by surpassing $45,000 in value, a level it hasn’t seen since April of the previous year. This marks the continuation of the cryptocurrency’s rollercoaster journey, which has become a regular part of our lives. In January, the price of Bitcoin fluctuated significantly, crossing the $36,000 threshold multiple times in just a few days.
As of 2022, Bitcoin’s price has dropped to as low as $16,742, according to Coingecko. This is a significant decrease from its high of $45,000 in April. However, despite this, the trading volumes for Bitcoin on New Year’s Day were an impressive $22 billion, surpassing its market cap of $836 billion.
In the past year, Bitcoin has experienced a 171% increase in value, and in the past few months alone, it has risen by 13%. On a daily basis, it has seen a 5% increase. However, it is worth noting that the price of a Bitcoin coin in 2023 is expected to be around $17,000.
One of the main factors driving Bitcoin’s rise is the long-awaited approval of a specific ETF by the SEC. This has been a major contributor to the upward trend in Bitcoin’s value. However, despite many deadlines passing, there has been no formal action taken on the numerous pending applications for a spot ETF. The question remains, could 2024 finally be the year we see this approval? And if so, will it cause the price of Bitcoin to soar or plummet?
The round number of $45,000 may not hold any significant value in itself, but it acts as a psychological barrier for investors. Breaking this barrier can increase confidence, leading to more trading and potentially creating a flywheel effect. This is what many Bitcoin holders are hopeful for.
In the bigger picture, Bitcoin is getting closer to its peak value of just below $50,000 in the previous year. In the first few months of 2018, it mostly stayed above $40,000 but experienced a significant drop due to the collapse of the algorithmic stablecoin TerraUSD, causing a wave of bankruptcies and liquidations.
As the largest and oldest cryptocurrency in the world, Bitcoin’s market capitalization continues to grow along with its rise in value. Currently sitting at $855 billion, it has surpassed the market caps of major companies like Tesla, Berkshire Hathaway Inc, and Meta Platforms (formerly known as Facebook).
In conclusion, the future of Bitcoin remains uncertain. However, it is clear that it has become a significant player in the financial world, with its value and market cap continuing to rise. Only time will tell if it will continue to break records and surpass expectations.
