Bitcoin and other cryptocurrencies retained their high value on Monday, with the leading digital currency trading near $35,200, approaching its recent peak of $36,000. This is the highest price since the severe bear market of May 2022, and a significant rebound from the December trough of $16,000. The recent rally triggered a 30% increase in bitcoin‘s value in just a few weeks, breaking out of the previous period of low volatility.
The price stabilization is linked to expectations that the Federal Reserve will stop raising interest rates.
Key catalysts for this surge include the expected approval of the first spot bitcoin exchange-traded fund (ETF) by U.S. regulators and geopolitical risks in the Middle East, which reinforce bitcoin’s “digital gold” status. This scenario encourages investment in riskier assets such as cryptocurrencies.
We are also seeing growth in other digital assets such as ether and altcoins such as Cardano and Polygon. Forecasts indicate that bitcoin could approach $50,000 in the near future.
