By Camilo Botia

Bitcoin (BTC) soared on Monday, briefly surpassing $42,000 to reach its highest level in 20 months. This surge was fueled by a potent mix of factors, including:

• Anticipation of a U.S. Spot Bitcoin ETF: Investors eagerly anticipate the approval of a regulated bitcoin fund by the SEC, potentially as early as January. This development could open the floodgates for millions to easily invest in the world’s largest cryptocurrency, with estimates suggesting significant capital inflows in the initial days.

• Bets on Fed Easing Rate Hikes: The optimism surrounding a potential relaxation of the Fed’s tightening stance on interest rates has propelled riskier assets like bitcoin. Investors are speculating on rate cuts as early as 2024, contributing to a positive outlook for Bitcoin.

• Institutional FOMO: Noteworthy entities such as MicroStrategy are making substantial BTC purchases, and the resolution of legal issues for Binance has restored confidence in the industry.

This confluence of factors has created a “significant ascent” for Bitcoin, up 150% this year. In addition, other digital cryptos have also benefited: Ether (ETH) jumped over 6%, and other altcoins are also experiencing bullish movements. While they have yet to reach their 2021 all-time highs, the potential for further gains remains.

Bitcoin has maintained a bullish trend since October 26, breaking through to new highs for 2023. In November, it gained about 12%; in December, it’s already up another 11.04%, trading above $40,000.

The growing optimism and increased risk appetite in the cryptocurrency market have significantly driven this rally. Bitcoin is now overbought territory, as the RSI indicates; a bearish reversal and a technical pullback to $40,000 could occur at any moment.

However, if the optimism continues, Bitcoin could eventually reach $45,000 and then challenge a second resistance level at $48,000. Is this the start of another crypto bull run? Only time will tell. However, investors expect that with the regulatory clouds parting, the Fed potentially dovish, and institutional giants entering the arena, Bitcoin and most cryptos could keep trading higher in the upcoming year, especially considering halving will also occur in 2024.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.

Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.

Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.

Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.

Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.

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