Bitcoin exceeded $42,000

Bitcoin has reached $42,000 for the first time since April 2022. Bitcoin, the largest digital asset, has continued its recovery in 2023 on expectations of lower interest rates and increased demand from the exchange-traded funds sector, rising above $42,000. Bitcoin rose 6.1 percent to $42,144. Bitcoin was last at these levels in April 2022, before the TerraUSD stablecoin crash that contributed to a $2 trillion drop in digital assets. Investors are increasingly convinced that the Fed is done with rate hikes as inflation cools, and attention is turning to the potential extent of cuts next year. The changing backdrop has fueled a rally in global markets and increased interest in digital currencies. The crypto industry is also awaiting the results of applications from companies such as BlackRock to launch the first spot Bitcoin ETFs in the US. Bloomberg Intelligence expects some of these products to receive Securities and Exchange Commission approval by January. “Bitcoin remains supported by optimism about SEC approval of ETFs and Fed rate cuts in 2024,” Tony Sycamore, market analyst at IG Australia Pty., said in a note. Chart patterns point to $42,330 as the next level to watch, Sycamore added.