Bitcoin experienced a remarkable surge on Monday, crossing the $45,000 threshold, marking its highest value in nearly 21 months.
This price surge is part of the ongoing rally in the world of cryptocurrencies as we step into the year 2024.
According to data from CoinDesk, the world’s largest cryptocurrency reached an intra-day peak of $45,519.52 around 10:30 p.m. ET on Monday.
This is the highest level it has reached since April 5, 2022, and the first time it has exceeded the $45,000 mark since then.
In early trading on Tuesday, Bitcoin extended its rally, touching an intra-day high of $45,913 before slightly trimming its gains.
Nevertheless, it continued to trade around the $45,600 mark, representing a 7% increase for the day.
This surge in Bitcoin’s price follows a stellar year in 2023, during which the digital currency’s value rose by an impressive 152%.
Many analysts and experts anticipate that these significant price gains will persist.
Furthermore, there is growing excitement among traders regarding the potential approval of the first bitcoin exchange-traded fund (ETF) in the United States.
Such approval would enable investors to purchase a product that tracks the price of Bitcoin without needing to own the cryptocurrency itself, making it an attractive option for institutional investors.
Looking ahead to 2024, Bitcoin is set to undergo a “halving” event.
This technical occurrence will reduce the rewards provided to cryptocurrency miners by half, consequently decreasing the supply of Bitcoin in the market.
Historically, these halving events have often preceded substantial price surges.
In addition to Bitcoin’s impressive performance, other cryptocurrencies also experienced significant gains overnight heading into Tuesday.
Ethereum, often referred to as Ether, was trading at approximately $2,405, reflecting a 4.5% increase.
Meanwhile, Solana surged by 11%, reaching around $115, according to CoinDesk data at approximately 05:39 a.m. ET. This demonstrates the broader bullish sentiment prevailing across the cryptocurrency market.