The price of Bitcoin (BTC) has risen above $45,000 U.S. and is at its highest level since April 2022 as the rally in cryptocurrencies continues to start the New Year.
The world’s biggest cryptocurrency by market capitalization has gained 4% in overnight trading and is currently trading at $45,620.00 U.S., according to data from CoinDesk.
This is the first time that Bitcoin’s price has been above $45,000 U.S. since April 5, 2022.
The rise in Bitcoin continues the strong rally seen throughout 2023, when the price of the digital asset rose 152%, outpacing equity markets.
The rally is being fueled by growing expectations among investors that U.S. regulators will soon approve the first spot Bitcoin exchange traded fund (ETF).
This would allow investors to buy a product that tracks the price of Bitcoin without having to physically own the cryptocurrency, a development that’s expected to lead to an influx of capital.
Also, Bitcoin will undergo a “halving” this year, which is a technical event in which rewards offered to miners of the cryptocurrency are cut in half.
Halving events reduce the existing supply of Bitcoin and have led to sharp price increases in the past.
Other cryptocurrencies also continue to rally higher. Ethereum (ETH), the second-largest cryptocurrency, is currently trading at $2,400 U.S., having gained more than 90% in 2023.
