Bitcoin and other cryptocurrencies experienced a significant jump on Monday, with Bitcoin, the largest digital asset, reaching a 20-month high. Over the past 24 hours, the price of Bitcoin increased by 6% to nearly $41,700, surpassing key levels of $39,000, $40,000, and $41,000. This weekend surge propelled Bitcoin to its highest level since April 2022.
Notably, Bitcoin has recorded a gain of over 50% since mid-October, breaking free from a long period of stagnation. The last time prices reached such heights was just before the Terra stablecoin network's collapse sparked a brutal bear market.
In comparison, Bitcoin has significantly outperformed the red-hot Dow Jones Industrial Average and S&P 500. While these traditional markets have experienced robust growth since late October, driven by both crypto-native and macroeconomic influences, Bitcoin's performance has surpassed all expectations.
A primary driver behind Bitcoin's recent gains is the optimistic belief that regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF). Experts anticipate that such approval would introduce a fresh wave of investor interest in digital assets.
Additionally, increasing expectations of multiple interest rate cuts by the Federal Reserve next year have contributed to the favorable environment for Bitcoin and other risky investments. Lower interest rates generally benefit riskier assets like Bitcoin and technology stocks.
Ether, the second-largest cryptocurrency, also enjoyed a solid increase of 4.5%, reaching $2,260. Smaller tokens or altcoins demonstrated positive growth as well, with Cardano climbing 4% and Polygon rising by 2%. Memecoins exhibited even more buoyancy, with Dogecoin surging 5% and Shiba Inu jumping 11%.
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