Up Over 130% Since Early Year
Approaching $40,000 After 20 Months
"$100,000 Possible Next Year"
The price of the cryptocurrency Bitcoin is hovering around the $40,000 mark. This is the first time in about 20 months since May of last year. Bitcoin's price has surged more than 130% compared to the beginning of the year, continuing its recent rally.
According to global cryptocurrency market tracking sites such as 'CoinMarketCap,' Bitcoin's price reached $40,083 at 10:50 PM on the 3rd (UTC), surpassing $40,000 (approximately 52 million KRW) for the first time since May of last year. Currently, Bitcoin's price is holding around the $40,000 level, testing its support line.
At the beginning of this year, Bitcoin's price was around $16,000 (approximately 20.78 million KRW). This means its value has surged more than 130% in one year. Another major cryptocurrency, Ethereum, has also continued its rally, breaking through $2,170 (approximately 2.81 million KRW) on the same day, rising 4.43% in a week.
Bitcoin has shown strength since last October. This is interpreted as being driven by expectations for the approval of a Bitcoin spot Exchange-Traded Fund (ETF) in some quarters.
Previously, large U.S.-based asset management firms such as BlackRock and Ark Investment have applied to launch Bitcoin ETFs, and it is reported that they are revising documents to address concerns raised by the U.S. Securities and Exchange Commission (SEC).
Applications for Bitcoin ETFs have been ongoing since 2021, but they have been repeatedly rejected in the U.S. securities market due to the difference between futures and spot markets.
If a Bitcoin ETF is approved in the securities market, there is a high possibility that new liquidity from large institutional capital will flood into the coin market. This is why investor sentiment for Bitcoin has been strengthening recently.
In this regard, the global bank 'Standard Chartered' recently forecasted that Bitcoin could reach $100,000 (approximately 130 million KRW) by the end of next year. Jeff Kendrick, a digital asset researcher at Standard Chartered, stated, "As the halving approaches and Bitcoin gains upward momentum, it will surpass $100,000 next year," adding, "Bitcoin's market dominance within the total cryptocurrency market capitalization is also continuously rising."
He also predicted, "If various spot ETFs such as Bitcoin and Ethereum are launched in the first quarter of 2024, institutional investors will actively participate," and "this could drive the price increase of cryptocurrencies."
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