I find it fascinating how Bitcoin has once again surpassed the $45,000 mark, a level it hasn't seen since April 2022. This mirrors the volatile rollercoaster ride that the cryptocurrency experienced in January of that year, where it crossed the threshold multiple times within a matter of days, accompanied by significant dips as low as $36,000. It's worth noting that Bitcoin was last at $45,000 on April 5, 2022, and hit a low of $15,742 on November 9 of the same year, as reported by Coingecko.
Impressively, Bitcoin's market cap on New Year's Day exceeded $836 billion, with trading volumes reaching $22 billion. Currently, BTC is up over 171% compared to this time last year, showing a rise of more than 13% over the past month and over 5% for the day. It's quite remarkable to think that Bitcoin started 2023 at under $17,000 per coin.
Looking ahead to this year, it seems that the prolonged anticipation of the approval of a Bitcoin spot ETF by the SEC is a driving force behind much of the upward movement. However, numerous deadlines have come and gone without any formal action on the pending applications for a spot ETF. Will 2024 finally be the year when it happens?
While big round numbers like $45,000 may not hold any special significance, they do represent psychological barriers for investors. Reaching such milestones tends to increase confidence, leading to more trading and potentially creating a flywheel effect. Bitcoin holders are undoubtedly hoping for this outcome.
In the grand scheme of things, Bitcoin is inching closer to surpassing last year's high when it started just shy of $50,000. Although it mostly stayed above $40,000 for a few months, it experienced a significant drop after the collapse of algorithmic stablecoin TerraUSD, triggering a wave of liquidations and bankruptcies.
As Bitcoin continues its rally, its total value by market capitalization continues to grow. With a market cap of $855 billion, it has already surpassed Tesla, which is owned by Elon Musk, and even Warren Buffett's Berkshire Hathaway, according to CompaniesMarketCap. It's intriguing to see how Bitcoin's prominence in the financial world continues to evolve and make headlines.
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