As investors took into consideration comments made by Federal Reserve Chair Jerome Powell, which implied that interest rates would remain steady, the price of Bitcoin soared up to its highest position thus far this year.
On the Coinbase cryptocurrency platform, the largest cryptocurrency by market capitalization continued its upward trend on Friday, hitting $39,000.
With its current spike, Bitcoin has hit its highest price since May 2022, just before the collapse of the Terra ecosystem shocked the cryptocurrency market and caused values to gradually decline.
Since the greatest digital asset has more than doubled in value in 2023, cryptocurrency investors are focusing on the chance that Bitcoin may hit $40,000 as the year comes to an end.
As investors shifted to riskier assets, Bitcoin has grown by more than 133% so far this year, surpassing advances in many other established industries.
Price increases are being caused by traders’ and the cryptocurrency community’s collective optimism that the U.S. Securities and Exchange Commission will soon approve the first exchange-traded fund that is directly connected to Bitcoin.
Bitcoin price path cleared for $40,000
According to on-chain analytics company Santiment, Bitcoin almost touched $39,000 in response to the announcement that the U.S. Federal Reserve may hold its current interest rate hikes through at least 2024.
https://x.com/santimentfeed/status/1730678616739201170?s=20
Santiment thinks that with this action, Bitcoin’s route to a $40,000 price has already been cleared.
This optimism is further enhanced by the fact that BTC is receiving more attention than altcoins, which Santiment claims indicates that there is “enough fear typically needed for prices to continue rising.”
Santiment noted that in only one month, Bitcoin’s social influence has grown as interest in altcoins declines.
As of this writing, Bitcoin had gained 0.78% over the previous 24 hours to trade at $38,782, hitting intraday highs of $38,848 during the trading session on Saturday.
