By
Svetlana Soroka
April 26th, 2024
A new 2023 BTC ATH has been registered at $42,100.
Bitcoin (BTC) seems to have started a new bull run. Already today the coin has made headlines by hitting a new record this year at over $41,000 and now it has managed to achieve a new milestone. A new 2023 record has been set at $42,100.
Though the coin is still rather far away from its ATH of over $69,000 that was registered in November 2021, the gains of Bitcoin in 2023 are around 150%.
At the moment of writing, BTC is trading at $41,600.
Factors Fueling Bitcoin’s Charge
One of the key drivers behind this recent surge is the mounting speculation around the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF). Investors are now optimistic about the imminent approval of a spot BTC ETF by the US Securities and Exchange Commission (SEC). Major Wall Street firms like BlackRock Inc (NYSE: BLK), VanEck, Franklin Templeton, and Fidelity Investments are poised to launch the spot-based ETFs product.
Additionally, Federal Reserve Chairman Jerome Powell’s recent comments regarding the commitment to tackling inflation and maintaining a restrictive policy until achieving that goal have also contributed to the bullish sentiment.
Bitcoin advocate Max Keiser, who serves as a senior advisor to El Salvador’s president Nayib Bukele, envisions a new record high for Bitcoin soon. Galaxy Digital CEO Mike Novogratz has expressed confidence that BTC could soar to its previous ATH after the approval of a Bitcoin ETF, anticipating significant capital inflows into the ETF sector.
Bloomberg analysts predict the SEC will approve a spot Bitcoin ETF by January 10, 2024, a development that could be a game-changer for the digital assets industry. The current price surge has propelled Bitcoin to levels not seen since April 2022, before the TerraUSD stablecoin collapse that triggered a massive $2 trillion rout in digital assets. The cryptocurrency is now on track for its most substantial annual gain since 2020.
The broader crypto market has also witnessed positive movements, with altcoins like Ethereum (ETH) and Dogecoin (DOGE) experiencing gains. Bitcoin Cash (BCH) also jumped 11%, and the top 100 crypto coins collectively added more than 5%. This bullish momentum persists despite mixed performances in traditional stock markets.
Caution for Bitcoin Price Movement
Notably, some technical indications point to probable overbought situations, so investors may need to proceed with caution.
The weekly Relative-Strength index (RSI) for Bitcoin has closed over 75 for the past two weeks, indicating overbought circumstances. Nonetheless, historical data shows that Bitcoin has frequently witnessed big increases after periods of high RSI.
The continuous increase in 2023 has surpassed global markets and gold, illustrating cryptocurrencies’ resilience and desirability in today’s financial ecosystem. Market players are also looking forward to the approaching Bitcoin halving, which has typically resulted in price gains.
With Bitcoin’s supply scheduled to be halved next year, some analysts, such as Cici Lu McCalman of Venn Link Partners, believe the coin might hit $50,000 before experiencing a pullback.