**Bitcoin Breaks Above $40,000 for the First Time in 2023**
Bitcoin, the world’s biggest currency, has made headlines as it broke above $40,000 for the first time this year. This surge in value comes as a result of a wave of momentum driven by broad enthusiasm about potential U.S. interest rate cuts and anticipation of the imminent approval of U.S.-stockmarket traded bitcoin funds.
**Bitcoin Hits Highest Level Since April 2022**
In Sunday trade, Bitcoin reached as high as $40,210, its highest level since April 2022. As the Asia day began on Monday, it remained steady at $40,011 in thin trade.
“We’ll see if it sticks throughout the day, but bitcoin loves a break of big psychological levels, so it excites the bit-bugs again and adds to this momentum,” said Capital.com analyst Kyle Rodda.
**Bitcoin More Than Doubles Its Value This Year**
Bitcoin has more than doubled in value this year, breaking free from the doldrums of the so-called “crypto winter” that followed various scandals, including the collapse of exchange FTX last year.
**Market Anticipates U.S. Interest Rate Cuts**
The surge in Bitcoin’s value is part of a larger trend that has seen riskier investments and other interest-rate sensitive assets, such as gold, rallying hard over the last few weeks. This surge comes as markets wager that the U.S. Federal Reserve has finished hiking rates and will start cutting early in 2023.
**Anticipation of U.S.-Stockmarket Traded Bitcoin Funds Approval**
Reports in October indicated that the U.S. Securities and Exchange Commission won’t appeal a court ruling that found the agency had been wrong to reject an exchange-traded fund application from crypto firm Grayscale Investments. This news has also fueled bets that an eventual approval is near.
**Potential for New Wave of Capital into the Sector**
The argument goes that a spot bitcoin ETF would allow previously wary investors access to crypto via the stock market, ushering in a new wave of capital into the sector.
**Ether Also Hits 1-1/2 Year High**
In addition to Bitcoin’s surge, Ether, the coin linked to the Ethereum blockchain network, also made a 1-1/2 year high on Sunday, hitting $2,218, and steadying at $2,197 in Asia on Monday.
**Bitcoin and Ether Below 2021 Record Highs**
Both Bitcoin and Ether remain well below their 2021 record highs, which were above $60,000 and $4,000, respectively.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
