Topic: 2023-12-04 MSN/Reuters - Bitcoin breaks $40,000 as momentum builds (Read 62 times)

Bitcoin breaks $40,000 as momentum builds

SINGAPORE (Reuters) - Bitcoin has broken above $40,000 for the first time this year as it rides a wave of momentum on broad enthusiasm about U.S. interest rate cuts and as traders anticipate the imminent approval of U.S.-stockmarket traded bitcoin funds.

The world's biggest cryptocurrency hit $41,522 on Monday, its highest since April 2022 and has seemed to cast off the funk that had settled over crypto markets since the collapse of FTX and other crypto-business failures in 2022.

A 50% rally since mid-October has "seemed to mark a decisive shift away from the bearishness of 2022 and early 2023," said Justin d'Anethan - head of business development for Asia-Pacific at Keyrock, a digital assets market making firm.
He said evidence of institutional buying through November showed a new leg of interest and that although reversals ahead are not inconceivable, lows hit around $16,000 a year ago "probably marked the bottom".

Bitcoin-investor Microstrategy last week disclosed it bought an additional $593 million in bitcoin during November.

Meanwhile, riskier investments and other interest-rate sensitive assets, such as gold, have also rallied hard over the last few weeks as markets wager that the U.S. Federal Reserve has finished hiking rates and will start cutting early in 2024.

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