Its highest level since April 2022

Bitcoin has hit a new high this year, surpassing the $40,000 threshold, thanks to general excitement about US interest rate cuts and anticipation of the imminent approval of Bitcoin funds traded on the US stock market. The world's largest cryptocurrency reached $41,522, its highest level since April 2022. This rise is seen as a decisive turnaround after the FTX crash and other virtual currency failures in 2022. The sharp 50% increase in October indicated a significant turnaround from the 2022 decline and early 2023.

The analysis suggests that institutional buying through November reflects renewed interest, and while future devaluations are not out of the question, the lows reached a year ago probably point to a bottom. MicroStrategy, a bitcoin investor, revealed that it invested an additional $593 million in bitcoin in November. Other assets, such as gold, have also seen strong increases amid expectations of a cut in interest rates by the US Federal Reserve in 2023, reports Reuters.

Moreover, reports in October that the US Securities and Exchange Commission will not appeal a court ruling involving an exchange-traded fund fuelled speculation that approval of these funds is close. In the same context, Ether, the coin linked to the Ethereum blockchain, has hit a high in the past year and a half, reaching $2,253. However, both bitcoin and ether remain below their record highs from 2021.