Bitcoin crosses $40,000-mark for first time in 19 months

Crypto market overview: Bitcoin surged on Sunday to break the $40,000 level and currently trades above $41,000, a 19-month-high. Following the king crypto, ETH also broke the $2,200 barrier along with Bitcoin Cash and Shiba INU which also recorded an 8 per cent spike in their prices. The sentiment of the market remains highly positive as no leading cryptocurrency has recorded a decline in its price. 

The Crypto Fear and Greed Index also reflects the optimism in the market and the index hovers at 74 points in the greed section. 

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While talking to Republic, the CoinSwitch Markets Desk underlined the continued surge in the crypto market and the factors driving the rally. CoinSwitch said, “In the last 24 hours, Bitcoin touched the $40,000 mark and reached its highest price point for the first time since April 2022. While the market has been returning profits for eight weeks in a row now, the next resistance level for BTC lies around the $41k mark. Traders are expected to be cautious about booking profits as historically, December usually marks local top/bottom for crypto.”

Talking about the infamous Terra Luna, CoinSwitch said, “Terra Luna continues to be the top altcoin performer as LUNA crossed the 1 dollar mark as it did almost 3x in the last 4-5 weeks on the news of its community developers helping it regain its 1:1 dollar peg,” added CoinSwitch. 

Rajagopal Menon, Vice President, WazirX, while sharing his thoughts on the prevailing optimism on Bitcoin ETF approval, said, “Fueled by dovish US central bank remarks and hopes for a Bitcoin ETF approval, the rally countered Bitcoin's dip below $40,000 in April 2022. Investors, anticipating a rate cut, exhibit growing optimism in Bitcoin ETFs, evident in options predicting a potential rise to $45,000 by March 2024.” 

Shivam Thakral, CEO, BuyUcoin, also shared his view on the crypto market movement in the last 24 hours. Highlighting the role of the Fed rate cuts and increasing market capitalisation of the decentralised currencies, Thakral said, “The crypto market is witnessing its best performance since May 2022 with Bitcoin breaching the $40,000 mark and Ethereum breaching the $2,200 mark. The latest rally has taken the total crypto market cap to the $1.52 trillion level. The US Fed is expected to cut the interest rate in 2024 and that may boost the liquidity in the market, we may be witnessing early signs of the same.”

Sharing other key drivers of the rally, Thakral added, “The US Committee on Financial Services calling a December 8 hearing on digital assets may lead to a strong regulatory framework focussing on investor protection, which could prove highly beneficial for the broader digital asset market. The growing optimism around Bitcoin ETF approval will continue to create waves of positive sentiments within the global digital asset community and we can expect this momentum to sustain in the coming weeks.”

Edul Patel, CEO, Mudrex, also shared his take on the surge in Bitcoin prices. Patel said, “Bitcoin surpassed the $40,000 threshold over the weekend and is trading around $40,800, marking its highest value in the last 19 months. This noteworthy price surge is a result of strong bullish market sentiment and the anticipation of positive developments in 2024, including the potential approval of a Bitcoin Spot ETF in the US and the impending Bitcoin halving. Bitcoin's price has experienced substantial growth, exceeding 140% since the beginning of the year. Meanwhile, Ethereum has been trading above the $2,200 level.”