Bitcoin bulls are seeing green as the cryptocurrency approaches the key $40,000 level. After plummeting in 2022’s “crypto winter,” Bitcoin has staged an impressive 130% rebound this year, outperforming traditional assets like stocks and gold.
Propelling Bitcoin’s resurgence are rising hopes that the Federal Reserve will cut interest rates in 2023, easing the macroeconomic headwinds that battered risk assets. Also boosting prices is the likely approval of the first US spot crypto exchange-traded funds (ETFs) in January, marking a regulatory milestone for the maturing digital asset industry.
Major crypto players are betting the rally will continue. MicroStrategy recently purchased another $593 million in Bitcoin, Galaxy Digital founder Mike Novogratz predicts Bitcoin could reach $69,000 in 2023, and technicals point to a $37,000-$40,000 trading range this month. While risks remain, tailwinds are mounting for Bitcoin to eclipse $40K and challenge last year’s all-time highs.